{"id":59445,"date":"2025-03-22T03:00:40","date_gmt":"2025-03-22T02:00:40","guid":{"rendered":"https:\/\/housesmarketplace.com\/onity-leaders-talk-reverse-channel-profitability-tease-proprietary-product-development\/"},"modified":"2025-03-22T03:00:40","modified_gmt":"2025-03-22T02:00:40","slug":"onity-leaders-talk-reverse-channel-profitability-tease-proprietary-product-development","status":"publish","type":"post","link":"https:\/\/housesmarketplace.trio-tv.com\/ru\/onity-leaders-talk-reverse-channel-profitability-tease-proprietary-product-development\/","title":{"rendered":"\u041b\u0438\u0434\u0435\u0440\u044b Onity \u0433\u043e\u0432\u043e\u0440\u044f\u0442 \u043e \u043f\u0440\u0438\u0431\u044b\u043b\u044c\u043d\u043e\u0441\u0442\u0438 \u043e\u0431\u0440\u0430\u0442\u043d\u043e\u0433\u043e \u043a\u0430\u043d\u0430\u043b\u0430, \u0434\u0440\u0430\u0437\u043d\u044f\u0442 \u0440\u0430\u0437\u0440\u0430\u0431\u043e\u0442\u043a\u043e\u0439 \u0441\u043e\u0431\u0441\u0442\u0432\u0435\u043d\u043d\u044b\u0445 \u043f\u0440\u043e\u0434\u0443\u043a\u0442\u043e\u0432"},"content":{"rendered":"<div>\n<p>Despite having lower overall volumes when compared to the forward mortgage business, <strong>Liberty Reverse Mortgage<\/strong> remains one of the more profitable segments of parent company <a href=\"https:\/\/www.housingwire.com\/tag\/onity-group\/\"><strong>Onity Group<\/strong><\/a>\u2019s portfolio, according to information shared by executive leaders at a recent investor presentation.<\/p>\n<p>At this month\u2019s <strong>Sidoti<\/strong> Virtual Investor Conference, Onity leaders including CEO Glen Messina and chief financial officer Sean O\u2019Neil offered details about the company\u2019s performance over the past several years. They also discussed the products and offerings that have driven its recent <a href=\"https:\/\/www.housingwire.com\/tag\/earnings\/\">earnings<\/a> reports.<\/p>\n<p>Onity leaders touted Liberty as the fourth-largest reverse mortgage lender in the country based on Home Equity Conversion Mortgage (<a href=\"https:\/\/www.housingwire.com\/tag\/hecm\/\">HECM<\/a>)-backed Securities (<a href=\"https:\/\/www.housingwire.com\/tag\/hmbs\/\">HMBS<\/a>) <a href=\"https:\/\/www.housingwire.com\/articles\/here-are-the-top-reverse-mortgage-securities-issuers-for-2024\/\">issuance data from 2024<\/a>.<\/p>\n<figure class=\"alignright size-large is-resized\"><img fetchpriority=\"high\" fetchpriority=\"high\" decoding=\"async\" width=\"772\" height=\"1024\" data-attachment-id=\"435448\" data-permalink=\"https:\/\/www.housingwire.com\/articles\/liberty-reverse-parent-company-ocwen-names-glen-messina-as-board-chair\/glenmessina_ocwen_hw\/\" data-orig-file=\"https:\/\/www.housingwire.com\/wp-content\/uploads\/2024\/01\/glenmessina_ocwen_hw.jpg\" data-orig-size=\"772,1024\" data-comments-opened=\"1\" data-image-meta='{\"aperture\":\"0\",\"credit\":\"\",\"camera\":\"\",\"caption\":\"\",\"created_timestamp\":\"0\",\"copyright\":\"\",\"focal_length\":\"0\",\"iso\":\"0\",\"shutter_speed\":\"0\",\"title\":\"\",\"orientation\":\"0\"}' data-image-title=\"glenmessina_ocwen_hw\" data-image-description=\"&lt;p&gt;Glen Messina, CEO of PHH\/Liberty Reverse Mortgage parent company Ocwen Financial Corporation.&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;Glen Messina&lt;\/p&gt;\n\" data-medium-file=\"https:\/\/www.housingwire.com\/wp-content\/uploads\/2024\/01\/glenmessina_ocwen_hw.jpg?w=226\" data-large-file=\"https:\/\/www.housingwire.com\/wp-content\/uploads\/2024\/01\/glenmessina_ocwen_hw.jpg?w=772\" src=\"https:\/\/www.housingwire.com\/wp-content\/uploads\/2024\/01\/glenmessina_ocwen_hw.jpg?w=772\" alt=\"Glen Messina, CEO of PHH\/Liberty Reverse Mortgage parent company Ocwen Financial Corporation.\" class=\"wp-image-435448\" style=\"width:200px\" srcset=\"https:\/\/www.housingwire.com\/wp-content\/uploads\/2024\/01\/glenmessina_ocwen_hw.jpg 772w, https:\/\/www.housingwire.com\/wp-content\/uploads\/2024\/01\/glenmessina_ocwen_hw.jpg?resize=113,150 113w, https:\/\/www.housingwire.com\/wp-content\/uploads\/2024\/01\/glenmessina_ocwen_hw.jpg?resize=226,300 226w, https:\/\/www.housingwire.com\/wp-content\/uploads\/2024\/01\/glenmessina_ocwen_hw.jpg?resize=768,1019 768w\" sizes=\"(max-width: 772px) 100vw, 772px\"><figcaption class=\"wp-element-caption\">Glen Messina<\/figcaption><\/figure>\n<p>But Messina also explained that a major potential growth area for the company is the proprietary reverse mortgage market, which has much higher lending limits than can be found in the <a href=\"https:\/\/www.housingwire.com\/tag\/fha\/\"><strong>Federal Housing Administration<\/strong><\/a> (FHA)-backed HECM program. While the company currently has a roughly 18% share of the existing HECM market, it  currently has a 0% share of the proprietary space.<\/p>\n<p>This was not always the case. In 2007, the company introduced <a href=\"https:\/\/www.housingwire.com\/articles\/liberty-reverse-mortgage-releases-preferred-jumbo-reverse-mortgage\/\">Liberty Preferred<\/a>, its first proprietary product, which eventually left the market. Twelve years later, what was then known as <strong>Ocwen Financial Corp.<\/strong> announced that it had developed a new proprietary product called EquityIQ.<\/p>\n<p>It <a href=\"https:\/\/www.housingwire.com\/articles\/liberty-home-equity-solutions-launches-equityiq-proprietary-reverse-mortgage\/\">launched that summer<\/a> and was <a href=\"https:\/\/www.housingwire.com\/articles\/liberty-rmf-suspend-private-reverse-mortgages-over-pricing-volatility\/\">briefly suspended<\/a> due to COVID-19 market volatility in March 2020, but it was brought back a few months later. In 2022, the company suspended availability of the product again <a href=\"https:\/\/www.housingwire.com\/articles\/private-reverse-mortgages-reportedly-impacted-by-bond-market-volatility\/\">due to volatility<\/a> in the bond markets, and it has since been removed from the market.<\/p>\n<p>Liberty is now poised to reenter the proprietary space against seasoned competitors <a href=\"https:\/\/www.housingwire.com\/tag\/finance-of-america\/\"><strong>Finance of America<\/strong><\/a> and its HomeSafe product suite, as well as <a href=\"https:\/\/www.housingwire.com\/company\/longbridge-financial\/\"><strong>Longbridge Financial<\/strong><\/a> and its Platinum line. While Liberty\u2019s product is still in development, Messina is enthusiastic about the possibilities.<\/p>\n<p>\u201cObviously, launching a competitive jumbo reverse mortgage product thus gives the opportunity to grow,\u201d Messina said. \u201cAnd again, with an 18% [HECM] market share, we\u2019ve got nice market coverage to push that product through.\u201d<\/p>\n<p>No timeline on a potential rollout was offered.<\/p>\n<p>O\u2019Neil offered some insight into the company\u2019s profitability ratios. He explained that while the reverse mortgage business is much smaller than Onity\u2019s forward correspondent and co-issuer channel, reverse has a much higher adjusted revenue margin per basis point. <\/p>\n<p>In fiscal year 2024, the forward correspondent channel had an adjusted revenue margin of 24 basis points, while the reverse division had a margin of 341 basis points.<\/p>\n<p>Reverse and the consumer direct channel, while being dwarfed by the forward correspondent channel, \u201cdrive substantially greater revenue margin,\u201d O\u2019Neil said.<\/p>\n<p>In a \u201csnapshot\u201d of the company\u2019s reverse business, O\u2019Neil pointed out that Onity is a rare entity \u2014 a public company that originates, services and subservices its own reverse mortgages, which has a valuable place in the company\u2019s overarching portfolio.<\/p>\n<p>\u201c[There are multiple reasons] why we like it,\u201d he said. \u201cI\u2019ll point out that it\u2019s a very effective hedge to our forward MSRs. We hedge our MSRs somewhere between 90% to 110%, and reverse is an important component of that.\u201d<\/p>\n<p>These multiple reasons include what the company calls \u201crobust and consistent profitability,\u201d upside potential for its originations market if rates decline, and an appeal to correspondent partners seeking a \u201cone-stop shop\u201d for all reverse functions.<\/p>\n<p>It also has \u201cpricing prowess and servicing skills to acquire reverse assets,\u201d notable liquidity and accretive earnings via HMBS securitizations, and growth potential due to the high levels of <a href=\"https:\/\/www.housingwire.com\/articles\/senior-held-home-equity-falls-slightly-in-q3-2024\/\">senior-held home equity<\/a>.<\/p>\n<p>O\u2019Neil also highlighted the company\u2019s purchase of HMBS assets from <a href=\"https:\/\/www.housingwire.com\/tag\/waterfall-asset-management\/\"><strong>Waterfall Asset Management<\/strong><\/a> as a positive move. That deal was <a href=\"https:\/\/www.housingwire.com\/articles\/waterfall-reverse-msr-deal-with-onity-showcases-commitment-to-reverse-mortgages\/\">originally announced<\/a> during a Q2 2024 earnings call.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Despite having lower overall volumes when compared to the forward mortgage business, Liberty Reverse Mortgage remains one of the more profitable segments of parent company Onity Group\u2019s portfolio, according to information shared by executive leaders at a recent investor presentation. At this month\u2019s Sidoti Virtual Investor Conference, Onity leaders including CEO Glen Messina and chief [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-59445","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Onity leaders talk reverse channel profitability, tease proprietary product development - Houses Marketplace<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/housesmarketplace.trio-tv.com\/ru\/onity-leaders-talk-reverse-channel-profitability-tease-proprietary-product-development\/\" \/>\n<meta property=\"og:locale\" content=\"ru_RU\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Onity leaders talk reverse channel profitability, tease proprietary product development - Houses Marketplace\" \/>\n<meta property=\"og:description\" content=\"Despite having lower overall volumes when compared to the forward mortgage business, Liberty Reverse Mortgage remains one of the more profitable segments of parent company Onity Group\u2019s portfolio, according to information shared by executive leaders at a recent investor presentation. 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