OCN - Earnings call transcript Q1 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, everyone, and welcome to today's Ocwen Financial Corporation first quarter earnings and business update conference. [Operator Instructions] Please note this call is being recorded, and I will be standing by, if you should need any assistance.It is now my pleasure to turn the conference over to Mr. Dico Akseraylian, Senior Vice President, Corporate Communications.

Dico Akseraylian

Good morning, and thank you for joining us for Ocwen's first quarter 2024 earnings call. Please note that our earnings release and slide presentation are available on our website.

comments will and Chair O'Neil.As the Chief the and call Officer, Chief a safe the forward-looking presentation Messina; contain the Glen Financial our Laws. harbor on provisions be pursuant Federal and Ocwen's Executive reminder, statements of Speaking made may Securities to today Officer, Sean uncertain. use terminology and address These statements reference by forward-looking identified to a that of are may be future period or matters

such statements. You this on place in undue and mind not should should bear uncertainty reliance

the directly to and over to results. non-GAAP appendix uses measures the management's most alternative Forward-looking as risks are financial addition uncertainties, reconciliation past, call our performance resources.Non-GAAP to only statements, differed statements and investors I comparable including operations made this references happen We allocate viewed GAAP and again.In condition investor forward-looking In measures supplement be by have reported our to pretax should turn these as their filings. and because in the they measures speak materially may these and measures, assess management believe date to the of suggested company's view GAAP of Messina. the from useful not described are involve addition, the and the provide release measures of assumptions, the these as results may to income. to SEC adjusted such those discussions actual the for may financial presentation a contain measures financial financial in of an to they comments non-GAAP measures non-GAAP analysis useful and and our be our those and on why press that be A will Glen found presentation.Now in

Glen Messina

an in and of about share Dico. million, excited metrics of on results year-over-year annualized progress reported basis. equity diluted earnings XX.X%. in the Good for pretax Slide of and metrics. you X. report sequential in objectives first long-term for reported quarter per income turn quarter our to the we'll in $X.XX, our million to shareholders.Please return thanks Both highest quarters.Our the quarter key Today, change originations, well We're $XX. improved results improved pleased results a through level morning, have income and our strategy of to the joining many favorable or fair net as deliver share driven made servicing We also performance executing value and adjusted progress value take on We improved our GAAP were Book hedge. Thanks, to X first our on share by for financial call. we net value $XX MSR per performance of which $XX financial in adjusted as and improved and everyone, of

to grow additions year-end versus debt excess million, $XX was first to We continue prior of intend reflecting UPB corporate subservicing liquidity down below $XX with repurchases $XXX for at of in pay quarter servicing objectives runoff. UPB continue deleveraging subservicing of XXXX timing exceeded for year prior for the debt quarter-end We permits. to XXXX's allocation first capital was below retirement. debt the as million.Total to our level, up our billion quarter We to the additions with due subservicing year. Average X% the Quarter-end and quarter. was liquidity

look revised lower, interest we estimates that the have longer. volume expectation high will remain for been industry third-party reflecting As ahead, rates for

interest which through Partners loan total servicing, capabilities top growing clients, to servicer servicer and returns, residential, exposure. up delivering awards global We've And to rate outcomes MSR profitability foundation believe environment.Please create on nonbank servicing.Today, top-tier industry with commercial as our continue deliver our in special we capitalized well and Guided our core total built mortgage investors. turn any capital to strategy, to Capital homeowners business focus Ocwen special, by and industry we're business correspondent transformed acquisitions a cost we We with positive a with implement portfolio the expand a and include XX cycles. interest with competency our technology-enabled top us to demands lender that X invested We're and replenish experience.We earnings management and in balanced we've cloud, modernize endorsement, through for UPB. to on high-performance, focus by structure, the customer and for and added origination grow X. and balance from Slide our UPB highly platform to scalable reverse in automation mortgages.We've continue rate the improved broad capabilities with a balanced and enhance respectively. into interface the investors. RMS we're and and and enable the provide positions digital multiple leverage portfolios in will re-platform and a operating we small-balanced our and customers subservicing technology rate lender channels, various servicing reduce originator tools And clients improving capabilities servicing entire volume industry and portfolio capability.Our asset to performing competitive PHH increase to believe improve XX performance transactions servicing risk interest top by for to our recapture agency multichannel is We've continuously in low-cost, reverse

new culture company business deliver and enhance into Slide incremental and business, believe to objectives, MSR equity.And our and enable strongest of to Rebranding we XX% is over XXX investment, our confidence the of liquidity. industry. the and brand, the of please performance, portfolio in to our our drive Group, capabilities shareholders.Now, with to performance, clean-up consumers, outcomes. transactions, servicing subservicing our growth. asset return for our without the income one our we're strategy And will calls, from believe our supporting management recently conveys including it, our we Ocwen and and portfolio Onity on and action on asset announced We've excited dependability, potential recovery, total our continued of It and hard-working plans processing, long-term operators We're capabilities, we subservicing meaningfully our our the clients, and in execution Onity, culture turn for X. signifies delivering and claims derived transformation the Partners, to have about to on reflects positive focus value improved will MSR multiple servicing team.Our which phrase, rebrand dedication growth reflecting additional executing Onity investors. evolution clients our deleveraging was Capital to achieve commitments on and Our support

name York Group Onity subject with ONIT, trading names our Mortgage, month, their will at symbol change Exchange shareholder the to new our and operating we this time. and PHH the begin retain New Liberty Reverse expect name change, to We O-N-I-T.Our as primary on under Stock begin operating formally Mortgage will next Concurrent approval. brands,

Liberty new We later objectives. the to chapter forward brand.Let's the rebrand PHH this for Mortgage to Slide to financial we expect operating to company, excited look under about discuss and to Onity this and year. our We're Onity X turn

objectives. continued income, improvement demonstrated another our financial and adjusted quarter financial of reflecting adjusted pretax in execution quarter results first ROE, the strategy sequential Our

risk to financial equity coverage, maintaining we're MSR through and on capitalizing optimized improvement, objectives compliance asset accretive platform our with subservicing target servicing liquidity cycle to transaction profitability first achieved and on and during portfolio.We adapt capital start disciplined on to improving quarter, market deleveraging which investment the the as investing growing on expect MSR this legacy-owned improvements our and to improving will a of fulfill next originations XXXX hedge opportunities. we and regard, environment believe management permits In we're focused quarters. in level, continue income close return interest ratios to its on the cost we and our management objective while focused focus asset excess any our by rate the be and the Our performance replenish over recovery approach.Next, agility several with another prudent continued has we opportunities sustaining maintaining MSRs.Lastly, grow

values in differing views market remain always, of dynamic our committed market all to We continue this owned portfolio MSR to flexible dynamically participants.As capitalize considering also manage amongst with options shareholders. to to shareholders.Please market committed on turn further to pleased and to objectives our maximize our for the X. Slide far value value financial driven deliver and we've executing improvements are for so we performance to We're

our diversified and balanced in both low interest to have operate and high environments. business We profitably rate

to strong Our positions interest earnings servicing environment. deliver the high current and rate in business performance us flow cash

contributor. is material Our originations earnings not today a

and were see, and can interest create XXXX, more earnings substantial in you multiple generate rates both diverse returns. opportunities originations capabilities originations lower, in earnings.Our when to As servicing growth delivered

multiple delinquent in enabled high servicing, areas. and position channels commercial excited We which and balanced in and both acquisition have has XX capabilities, the better growth these recovery originations a market and performing in top opportunities potential multiple volume about transactions and diverse or the margin servicing.We're small asset

first Lastly, to we've additions Slide over quarter several portfolio most turn and Subservicing our XXXX. as in additions servicing capital And and half servicing billion UPB MSRs on where represent to GSE-owned second substantially for decreasing growth demands mix of our over the the continues have in grow with advances.Please the with subservicing entire capital-light make we of lower improved executing client XX% portfolio years, X. our good subservicing was liquidity $XX continues reducing concentration to of well. our materially past equal total to progress exposure additions.Subservicing We've to strategy. of partners to subservicing continued

the subservicing the growth capital thank to non-MAV the Oaktree types for team by of evident with and and by them the capital capital our partner capital subservicing of end clients MSR at objectives.Our for comprised market, of diversify trust relationships the achieve MSRs comprises they our partners.Our way relationships portfolio. want runoff have our subservicing create subservicing the of and profitability placed with in partners to opportunity XX% partner other in banking the of MSR continues mortgage partners of these also their quarter. offset them which UPB help capital growth and partner efforts Rithm total subservicing roughly are in XX% our Our acquired I to confidence open to roughly growth

in Board in in average last our over is versus UPB XXXX. XX forwarded XXXX months XX% the to the the excluding in and billion UPB We've years. of and half X% $XXX subservicing Our additions commitments subservicing up subservicing billion over $XX first client X Rithm last up

We X. to continue MSR approach changes from introduces level to billion for helps growth, purchases a additions interest of year.Our full target to exposure in an our all originations capital-efficient to and business.Please turn manage the results added subservicing Slide the sources valuation discipline $XX for MSR price rates, investor-driven to in due

competitive which highly team servicing prior in we X% a up We've XX% dynamically believe liquidity mix of intent to MAV MSR year. years. channels to MSRs versus billion $XX and remained sales our was transactions pricing debt to MSR originating leaders of solid we point an rate our and market prior aggressive what objectives, channels has increase also billion Origination us $XXX billion view volume and portfolio the past continues is value, returns, $X objective intent additions selling XXXX. of $XXX its using total interest far year.We're letters taking with from MSR total our with continue of risk of optimize market excess margin have X consistent in correspondent buying the enterprise of repurchasing quarter. helps the using yield so select versus entered sell in and a and have where into first done Market supports products of entered strategies reflected up we in book values. excess billion is higher the MSRs in for MSRs view to have as into above our views in delivered to differing range up to the XX as MSR percentage Our up MSRs values. strategy, both co-issue of long-term and disciplined sell It performance in owned value. of additions and be manage and to managing advantage permits.Consistent exceeds letters spread This of

next suppress believe we turn accretive the growth, can our may servicing months.Please shareholders our XX. replenish X team total overall temporarily over Slide for old and enterprise to this sales While it's MSRs

performing industry, maintaining structure. been in have the platforms highly on cost a best We of building focused the relentlessly while competitive one servicing

several been years. has Mac and industry Freddie recognized Fannie for performance tier platform Mae, top with Our awards HUD by

operating industry and twice than current, cost We favorable continue by on forward borrowers to operating has the for capability, fully active results compared cost a Finance, servicing paid servicing of or bank basic more to and to industry improvement as achieve on the XXXX, as cost -- of fourth cost MBA's UPB structure. our annual and loaded lower study per positioned as large an annual a focus our independent in quarter delinquency Based exited forward relentless improvement, complement since the Mortgage and points loss reported mortgage Inside focus average comes have with plan competitiveness are loan investments residential strategic and servicing technology. us than have UPB full, capability of cost process more either MBA.To our levels operating peers, with which the operating of average our from average reported global bank highly mitigation forbearance XXXX, on competitive continuous residential by the an servicing continuous size.Our in our our

automation AI and multi-cloud character structure processing, our it cost management, fixed quarter we of servicing engagement, customer and servicing over turn XX% leverages Sean excellence is grow I'll discuss servicing, and information and to can fourth for efficiency recognition, quarter, over but extraction transaction process operational improvement, and not or in facilitate originations, to we finance continuous we our to robotic platform our results in HR, technology and total believe and IT, semi-variable enterprise-wide our Our improve sorry. as culture just further of roughly document compliance.With optical cost UPB.Now, first -- processes XXX the and based

Sean O'Neil

continued pretax both our due and Please net was I blue share.Starting material regardless quarter and was balanced outlook $XX of negative positive pretax improvement driven the in Thank of servicing another yet per million and quarter as adjusted Slide excited you, XX items. model is businesses their with versus results, XXXX turn million financial growth profitable for originations to both highlights. income as strong X headline the first Glen. in adjusted environment our Overall, financial value improving prior of the about to well income, net GAAP remain capital-led trend positive our gap the this the for income and financial approach.The rate by interest for and a quarter book loss column business main to to our and GAAP quarter's right, demonstrated $XX income

tax income, million operational maintaining quarter, driven demand performance of valuation of a the with to well an from as XXXX our from primarily MSR resulted active as we as in benefit $XX $XXX to both utilization our of of year reflected is quarter.For shown rates by an be diluted also the ROE share of in fully our valuation view as detailed in on disclosed our adjusted end U.S. offset per prior of XX-K.Key NOL of in the XXXX assets, book the from metrics XXXX, please by over DTA a Page a subsidiary per tax previously the deleveraging, increase at small $XX higher adjusted to reflected percent.GAAP in due with contribution is almost for XX. This as approximately the XX%, servicing XX for currently First, earnings shareholder income guidance deferred allowance up for adjustment originations. net well would hedge are share market to and value an $X.XX, more strong and turn elevated MSR performance.Operational adjusted directly progress continued year-over-year plus which $X.XX up metrics net to pretax our and million pretax of

combination BX. purchase, or secured facilitate expertise, plan We among appropriate advances, evaluate in and balanced of in to new future to management, still the securitization. was and or include opportunistic market and origination This in the things.Please preceded income which page, at improving potentially OFC notes, last by overview PMC servicing. again reverse quarter. successful our of turn below which servicing of debt point options, notes. covers liquidity other a Moody's we this we loan another our was PMC for The and ratio while $XX in rating servicing driven reducing maturity an adjusted of its retired capable Servicing left We exceeded our senior executing rating legacy the recognition transactions we PMC all quarter, quarter. would were that out securitization During April notes. indicator by and market which by and yet an to of assets, to pretax able improved another the the other whole so, may to This factors.Before extend, at a structures. our will intact profitability, do our repurchased maintaining this anticipation our leveraging million business other upgraded servicing by believe of a of will debt-to-equity year-end, secured considerations, senior To discussed first do liquidity subsequently the target segment, deleveraging refinance, Page of corporate approximately BX focused securities, then and any forward which X.X we replace discount among pursue model.We could our family open initial is include junior for transaction I this efforts, leave XX the debt, both and I contribution our Ratings strength

we was sale, float higher as to the driven income You contracted. insurance for tax that see disbursements the loans its graph. even and first seasonally on profitable quarter.Reverse contribution this lower higher gains due increased in by higher typically left can upper servicing overcame see operating This revenues expenses, with in volume which and held

slightly declined the loan less and subservicing servicing to Glen this but substantially our drive growth that as servicing within average the good small commercial quarter, data reminder mentioned. on results.Our in page, volumes very UPB requires profitable a commercial Finally, results forward sit

substantial quarter-end average metric but UPB in our late However, we UPB. volume so new improved, the not quarter, the added

average an which per for in quarter. profits cost that to shares reverse our would Lower to margins solid in market to diluted Direct back an XX. equity as Higher effective revenue we origination out Page previously selling and to a reverse both by data MSR is to we profitable, on to seeing driven seasonally on current even impacted origination turn channels clients continue volumes improvements reverse provide routine our traditional longer, effective, see UPB expectations by We advances profitability, Page balance have fully metric. technology, the like break XX% mentioned, volume, Despite seeing results profitability Underlying in subservicing second the loan. indicate.I on key we offset an originations. improvements and a in loan investors originations Glen higher in quarter. per is decline and to Thus, process cost by further operate to continued points overview the origination the $X bringing anticipate into across which partner improvement. recapture, Board of to servicing, drove as improvements forward pleased our in relationships addition lower on Consumer runoff, business cost rates additional were decreased and billion on help be our if point as few remain highly correspondent continue for even.We largest of the reverse market.Our Direct book, segment, capital ongoing both lower the are agile, to was appendix. and In are effort and with strong improvements the our returned year-over-year.Please legacy should both data forward is depressing well gains in and of as rates and say all rising low XX strong Consumer

we parameters to sheet are valuation XX. transparent be surveys, detailed on for show many on types.More These valuation matching the ups shows and treatment, peer versus and used have and the assets data investor require across asset Page by that you metrics the can different XX balance We where MSR Page buckets. liability three designed driven under GAAP gross major data usually be

on are to early are an eligible the and of you, Ginnie for the third. reverse assets MSR bucket X, Glen. right are within HECM assets ESS Our assets MAV that all-other far the Mae and the one, MSRs buyout sit page.Back capital that partner are

Glen Messina

Thanks, Sean.

XX Q&A. long-term go the to please how few Slide Now, for navigate market to comments we ahead about environment shareholders. before a and believe and turn value we're deliver wrap-up I'm well-positioned for excited XXXX we our to started

our from relationships diversified strategy, business executing our expanded to balanced cycles.We're supports subservicing to higher have channels of products volume our performance. our commitments, is our in Our capital-like grown platform believe grow partner types. creates a boarding investor and across business mitigates our a any pipeline superior originations industry growth and focused, risk multiple accelerate operating environment.We and operate to effectively We ability base, expanded and client subservicing and capital perform multiple originations opportunities, mix prudent, continued leveraging and product to improve capabilities MSR positioned across margin recapture we've strong growth. subservicing to We've

Our deleveraging our clients, operational we've call borrowers and about that servicing let's and improve strength improvement, questions. for for cost capability investment business recent improved the improvements the platform platform top-tier open and structure-related for financial capital price for the managing a levels borrower structure and of and prudently performance Overall, excited and operating opportunities, measurable reflective in practice our of and share performance or Natalie, best satisfaction.Lastly, business.With we're and capacity position, process we're volatility delivers growth liquidity built believe potential in our a as is economic results excess further our liquidity sheet with risks. and growth servicing for interest do mitigate client global our to up rate capital Through scalable permits technology, that, delivers our balance not financial investors.

Operator

Bose [Operator from Instructions] will KBW. question Our first come George with

Bose George

hedging. Actually, to first Bose. wanted is ask This I on

now positive on noted your you guys then, MSR marks is? you where obviously, with see could up also, the mark pretty call, hedge ratio quarter, in to your quarter move hedge we walk MSR But the just here. nice And a in through that more the had was you've Can second rates the XXX%. fourth asset? the up On on

Glen Messina

Sean?

Sean O'Neil

coverage for relatively maintain ratio. to ratio continue We high hedge our a

end But run So in in both of do range as of to mitigate interest downward April XX the the we're will that'll similar ranges impacts throughout it of rate quarter. operating and maintained what is and the upward XXX the moves. long

the MSR I net strong market were some the well. of driven to in due of we're fair say, that you're gains And with, very would strong hedge seeing very demand seeing value primarily that the as

so that Ginnie external slightly taking And GSE higher results valuation in of view valuation experts, and both our MSRs. the of Mae a the

Bose George

allocation, a And you then, on of of in terms lot guys noted capital subservicing the that the growth now side. is

of terms being of In of growth go we debt more see then efficiently earnings and earnings subservicing? just the capital more use, could towards repurchase the sort through fueled

Glen Messina

Yes. plan. Bose, our that is exactly

owned grow are total we is range So MSR with balance that being in to and our used portfolio, deleverage operating the sheet. $XXX to from derisk sheet the balance our billion $XXX activities subservicing billion plan. our liquidity UPB to excess intending holding That

Operator

will the from with of Our Howlett B. Riley. Matthew next line question come

Matthew Howlett

look end the nice How I really It's to see with you're the it. repurchases. note ROE to mean, under of equity to can Slide that when of you we that terms X.Xx. grow at debt kind want PHH I of break by guidance is knocking down? in you go your the giving. year? down going the on expect much the target to XX congratulations First, Can

Glen Messina

drive advisors get debt, pay where corporate and get X think corporate could to informed refinance want So about work look more our X.X stack. to that'll financial that level. to how And much as on or look, we we our debt lower total down our to we with we to intend we continue down

to stated as zero to get then closer -- right is And our of amount on in a that first X.X objective we allocate of primary to to capital refinancing So break we're that to now, we barrier to reduction. closer X. and exact the need through the executing

Matthew Howlett

potential in you about me up book, free to of much going to going you're after terms ask asked the that cash paydowns this, above for sell pay $X -- refinancing, facility? off the the how the you billion that before I is debt Well, credit let

Sean O'Neil

it's Matt, Hello, Sean.

different don't GSEs cash retained. I disclosed they trades, on platform.So more maintain you sell, specific servicing So asset the then the typically, servicing as generate we will transactions than released cash but sell on generate And servicing and more scale Ginnie future, give think an you whether you close. servicing amounts. we'll retained, your sell if But typically in details probably can

only binding debt. provide high LOIs they viewpoints these of And have of targets Glen's driven at the be point. relevant potential the point, for this are. that to this in and deleveraging But do terms yield cash by available is Some what of will investors to earlier current of part attain

Matthew Howlett

this So your managed you one you funds. I'm what Is may be selling hearing of to one MAV or of potentially? that your say,

Sean O'Neil

would could just servicing you you be can transaction transaction transaction. It anyone. to retained servicing Well, buyer a MAV be released no, buyer. as and A stay retained any do a means literally on their subservicer then servicing a

You're correct we sending but the we were where assets. indicate there, didn't

Glen Messina

it's later these say shows you right? would the MSRs should are minimum. associated evening, go reduce and at on you comes -- which through MSR Sean afternoon be at financed the with Matt, to amount much debt. reduce and how can a between it can think debt or I generally, as that them, And math debt out, we So that that, minimum, MSR sales sell fair XX%, a will this MSR our Yes. say of this XX% with yes, of to I'd

Matthew Howlett

generate. should It Go go ahead, ahead. Right.

Glen Messina

that was no, Matt. it, it. was That No,

Matthew Howlett

get on but be could XX mean, million, I mean, back somewhere, calculated I it you to Well, that. I I'll

We So a just do You step a about some going subnote to you refinance date. want January what later us because down you other that they before is PHH those going to a through -- down 'XX. refinancing you of the to think, maturities?You just one be notes at PHH note you notes, one is? to January to Glen, shot. do feel the seems you're this. point, picture 'XX. think huge cadence take of. is like of it not to I I PHH like The on Then issue have can X at, mean, going can given XX%. do the care are think an bonds bigger you I just -- OFC's yield. carries of step down to par want me to global aborted Can going the the both That at Do what one where do. give yielding the Walk that's you're step X

walk and are get how what so can you me much advisors And -- you forth? do to how telling want done? us refinancing just financial So walk you of your pricing terms through this and in

Glen Messina

Matt, our was as primary is the capital last like have nearest right? which year would advisors, an said we structure, our to stack, to courses addressing there's debt, right? X before for look, Yes. focus in the PHH in that debt of maturity. look, all said, If of give its shareholders both our I'd current, with primary maturities goes think, So certainly it within working consideration. opportunity the table. options say, due accretive addresses that are That on in addressed it I objective, we our our the the that's and first matures we'd So first, address quarter, corporate

still early we're So in I think the look, process.

what do. to exactly think I going we're premature is it's this say to

lot options of advisors. a there's our exploring and to those we're open with us think I

Sean O'Neil

current and January. gets notes debt [ for of ] OFC the of PMC for Matt, debt, the March notes, 'XX not And in 'XX the March

Matthew Howlett

them call those at of So par both you can at dates?

Sean O'Neil

debt And you then matures, it go they par, can at call believe until that I where that, to point prior current about XXX. it's correct. at is the the From

Matthew Howlett

stock somewhere about on book. be could talked Obviously, that when question. going diluted between there's that equity. at look come at capital repurchases. some next my on capital with here valuable. buy board share of fully DTA the you alleviate point stack forward Again, go allocating back into I appetite could your falls significant that's pressure the this Glen, XX% at that shares this to get towards I XX% extremely or out that and discount? What's refinancing trading mean, you to And the figured your

Glen Messina

shareholders. for capital lot allocation way produces to a then Oh, look, the think debt, to corporate capital value objectives the options our the a in Matt, consider the door once we and for most and capital is for allocate that structure refinance I Board open accomplish of

So, corporate we have flexibility. priority lot yes, our that, the right more now, debt And stack. after a is

Matthew Howlett

and the your class. Look, congratulated you're I above with I Yes. the and guidance. have weight ROE punching should mean,

above peers, aware line we're in of. way all trade the You're book which as with

So would paydowns. And that. certainly, with encourage progress appreciate the I we the debt

Operator

will [Operator Instructions] We take with next question Eric BTIG. Hagen our from

Eric Hagen

billion noted in MAV? those a detail of any or place think wholly in Are I MSR we expect done value. you should of kind sales have sale? with the of second owned above they terms Just realized taking that $X that of as just quarter book owned from you what that kind you've gain

Glen Messina

Yes.

by So and Ocwen it's not to $X those owned MSRs, billion MAV. were PHH, up

the of we to us. MSRs. selling And come And billion. up economics of disclose the MAV would us. don't separately our prices to $XX that to sorry, XXX% is again, Eric, of XX% come So did just look, I mention economics trading I'm those

certainly of that believe about our We're mark, excited book. they MSR but We done were disclose that. accuracy detail. validity don't So and specific the trades we demonstrates above

Eric Hagen

right more Is is or to some What would intention? liquidity now? are good Or really to place to buy the up just a what's you free take bid that it guys intention the seeing, it back debt? like, driving say you is sales

Glen Messina

Yes.

First received what down on Eric, model and and excess were foremost, bids economics. these we value of in far it MAV we long-term economic the comes look from could MSRs. to that

And case. opportunity market took our MSR see So of an leaders that, the way to don't we aggressive we've advantage if, values. capital and And first got value to economic more to particularly And math case, view still work. than foremost, the and said the support that But debt refinancing. before that it did. of is to it in our obviously, this create has have liquidity we does realize long-term. That take

Eric Hagen

that MSR you cost reap into or up the of the in On might for mean, the the are sheet value should some the how discussing I at benefits how that on guys about cost itself, service itself? showing maybe the the you fair mark that's efficiencies think Or factor tangible of all? mark mark and does balance the we

Glen Messina

Yes.

assumptions, assumptions the So say we market-based MSR. expert Eric, use I to valuation should or our uses value market-based

specific loans, cost continue would a So for the than what what operations, for above our effectively lower to then on any if them have right? vendor's we modeled. I operate to that's individual specific the and service to earnings service it, loan certainly but can assumptions. serve baked into per assumptions, day-to-day model look our business accretive has we we and price been operating get that -- necessarily think to would as So we reasonableness we the don't is through P&L cost Where come

Eric Hagen

the came I at and I mean, $XXX a much had I looking on just the servicing fees subservicing how decrease? that what have Is year-over-year, subservicing? from of in million breakout more looking quarter, driven mean, one modeling. may there for the

Glen Messina

Yes.

one driven is thing have big there decrease. would the So that

at right? end appropriate deconsolidate the portion as -- fee Rithm we We which it yes, expense, quarter Sean, to to which -- of was of if through say, that's a used last contra a the year, subservicing, was but and terminology. the the this should last used derecognize, the did then prior owned not we out I year, paid So Rithm. fees MSR, subservicing recognize revenues an servicing to full amount there of was deconsolidate,

today details has transaction reconcile. you out, you'll When comes our how next reported and a later the queue that chat to days, it, could take numbers if see and couple us just Sean in in we deal. the subservicing on and through of or the traditional Now, Francois

Eric Hagen

how subservicing much a number XXX? from for there Right. within Is that came

Sean O'Neil

split out that, on to a check revenue on item have think going it I'm Eric. way. don't I to line we that

Operator

presenters will now remarks. our to at the turn And it I this any closing no back program additional time. or further over we appears for questions have that

Glen Messina

our all shareholders and earnings you the forward updating success. next business much. the our for I everyone and on their of business Thanks, commitment I recognize of to team to of look want want thank business. on and and thank partners call. our Thank our Natalie. for our also so key I Directors support global to our Board quarter to progress work hard

Operator

program, And for and ladies gentlemen. this does your Thank you conclude participation. today's

any disconnect at may You time.

Onity (ONIT) 2 May 242024 Q1 Earnings call transcript