Ocwen Financial, Q3 2026 Earnings Call Transcript

Onity Group’s third-quarter performance improved from the prior quarter as higher interest rates lifted servicing income and offset weaker originations. Adjusted pre-tax income more than doubled to $30 million, with adjusted ROE of 19%; servicing UPB grew 9% year over year. If rates remain near current levels, servicing is expected to be the primary earnings driver, and the company is resizing its originations platform and becoming more selective in acquiring MSRs.

Full-year 2026 guidance is unchanged: adjusted ROE at the low end of 10%–15% and servicing UPB growth of 5%–15%. Management expects operating expenses to fall by more than $50 million in 2027 versus its 2026 forecast, while continued financial-market volatility remains a headwind through hedge and loan-sale costs. The company also plans to prioritize higher-margin subservicing growth and maintain flexibility in allocating capital, including potential debt reduction or share repurchases.