Tuesday, June 18, 2024
HomeReal EstateLiberty Reverse parent completes rebrand to Onity Group | Black Kite Express

Liberty Reverse parent completes rebrand to Onity Group | Black Kite Express

The parent company of the top 10 reverse mortgage lenders Liberty Reverse Mortgage has completed its shareholder-approved rebranding initiative, transforming the former Ocwen Financial Corporation. in The Onity group.

The initiative has also transitioned the company NYSE (NYSE) to “ONIT” as of market open on Monday.

“Today marks the beginning of a new era for our company and signifies our transformation, growth and expansion into a balanced and diversified business,” Glen Messina, CEO of Onity Group, said in a statement. “We are proud of what we have built: a strong services platform with industry-leading cost and operational performance, multi-channel originations and asset management capabilities, and a global technology-enabled platform.”

Company leaders previously described the move as an expression of the attitude they want to evoke in their product offerings. Messina added that this is a central element of the entire rebranding initiative.

“We now have a brand identity that reflects our company, our people and our commitment to generating results,” he said. “Our new name, derived from the phrase ‘in him’; our slogan, ‘we did it’; and our vibrant, energetic visual identity collectively represent a company that takes action, delivers on its commitments, and is relentless in creating success for its customers and stakeholders. “Onity represents who we are today and I am excited for what the future holds.”

The company initially announced its intention to rebrand in April, due to what Messina called the steady growth of its mortgage and servicing portfolios, a common point of emphasis in the company’s recent earnings presentations. The rebrand was contingent on approval from the company’s shareholders, which it received in late May to clear the way for Monday’s transition.

Other major brands under the company’s umbrella, including PHH Mortgages Corp. and Liberty Reverse Mortgage, will do the same and will be renamed Onity Mortgage for this fall.

In the company’s most recent earnings report, company leaders explained that while they had to deal with a contraction in reverse mortgage volume (an industry-wide issue), the division itself remained profitable.

“Reverse servicing increased its profitable contribution with higher profits on loans held for sale, even as volume contracted,” said Sean O’Neill, chief financial officer at Ocwen. “Despite the rate increase, which further depresses low seasonal origination volume, we are pleased to say that all of our channels returned to profitability in the quarter.

“Higher margins on lower volumes drove profitability, with reverse origination seeing the biggest improvement. Lower profits and matching were offset by converse profits and bringing direct consumers back to break-even,” he said.

Based on Home Equity Conversion Mortgage (HECM) supporting data compiled by Reverse Market Perspective (RMI), Liberty is the nation’s fourth-largest reverse mortgage lender. It supported 1,338 HECMs during the 12-month period ending May 2024, showing a notable increase between March and April. In May, the lender’s volume decreased slightly by 11 loans compared to the previous month.

Based on Q1 2024 HECM-backed securities (HMBS) issuer league tables compiled by New view advisors, Liberty/PHH was the industry’s third-largest HMBS issuer with 55 pools and an original aggregate amount of approximately $247.4 million. This gave the company an HMBS emissions market share of 18.7%.

At the close of trading on Monday, Onity Group’s stock price was down 3.15% to $24.29 per share.

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