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Reverse Mortgages (Tables)
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Schedule of Loans Held For Investment and HMBS Related Borrowings
The following table summarizes the activity in reverse mortgage loans and HMBS related borrowings that do not qualify for sale accounting and for which we elected the fair value option:
Years Ended December 31,
202520242023
Reverse Mortgage Loans (4)
HMBS - Related Borrowings (2)
Loans Held for Investment - Reverse Mortgages
HMBS - Related Borrowings (2)
Loans Held for Investment - Reverse Mortgages
HMBS - Related Borrowings (2)
Beginning balance$11,125.3 $(10,872.1)$7,970.0 $(7,797.3)$7,504.1 $(7,326.8)
Originations 1,039.6 — 1,125.0 — 1,033.4 — 
Securitization of HECM loans accounted for as a financing— (1,086.2)— (1,073.5)— (1,054.6)
Additional proceeds from securitization of HECM loans and tails— (17.3)— (13.2)— (11.0)
Acquisition (1)
— — 2,912.7 (2,880.9)— — 
Repayments (principal payments received)(3,031.5)2,999.0 (1,495.4)1,474.7 (1,076.9)1,070.1 
Transfers to:
Loans held for sale, at fair value(13.1)— (4.8)— (6.1)— 
Receivables, net(7.2)— (3.0)— (3.4)— 
REO (Other assets)(1.2)— (0.5)— (0.1)— 
Other
6.6 — — — — — 
Fair value gains (losses) included in earnings (3)
689.0 (635.0)621.2 (581.8)519.0 (475.0)
Ending Balance$9,807.5 $(9,611.7)$11,125.3 $(10,872.1)$7,970.0 $(7,797.3)
(1)On November 1, 2024, we acquired certain reverse mortgage assets and assumed the related HMBS of MAM and investment funds managed by Waterfall Asset Management, LLC that own MAM (collectively “Waterfall”). In consideration of the net acquired assets, Onity issued shares of a new series of preferred stock. See Note 16 — Mezzanine Equity and Supplemental non-cash activity of the consolidated statements of cash flows. Post-closing and other adjustments were agreed upon, and settled by the parties in the fourth quarter of 2025.
(2)Represents amounts due to the holders of beneficial interests in Ginnie Mae guaranteed HMBS that did not qualify for sale accounting treatment of HECM loans. Under this accounting treatment, the HECM loans securitized with Ginnie Mae remain on our consolidated balance sheets and the proceeds from the sale are recognized as a financing liability, which is recorded at fair value consistent with the related HECM loans. The beneficial interests in Ginnie Mae guaranteed HMBS have no maturity dates, and the borrowings mature as the related loans are repaid. The interest rate is the pass-through rate of the loans less applicable margin. See Note 2 — Securitizations and Variable Interest Entities.
(3)See further breakdown of the net gain (loss) in the table below. Includes interest accruals.
(4)Reverse mortgage loans were reclassified from loans held for investment, at fair value to loans held for sale, at fair value in November 2025 with a fair value of $9,934.7 million. The above table includes the activity of loans held for investment through November 2025 and loans held for sale thereafter with $86.6 million Originations, nil Repayments towards December 2025 originations, $31.8 million Fair value gains included in earnings, and $0.9 million Other. The $3,031.5 million repayments of reverse mortgage loans include $245.6 million of repayments of loans that were classified as held for sale at December 31, 2025 and previously held for investment, which remain presented as investing cash flows in the consolidated statement of cash flows.
The following table presents the Fair value gains (losses) on reverse loans and HMBS-related borrowings included in earnings:
Fair value gains (losses) included in earnings
Years Ended December 31,
202520242023
Fair value gains (losses) of Reverse loans (1)
$689.0 $621.2 $519.0 
Fair value gains (losses) of HMBS related borrowings
(635.0)(581.8)(475.0)
Total fair value gains (losses) included in earnings
$53.9 $39.4 $44.0 
(1)Reverse mortgage loans were reclassified from loans held for investment, at fair value to loans held for sale, at fair value in November 2025. The amount reported for the year ended December 31, 2025 included $657.2 million as loans held for investment, at fair value, through November 2025 and $31.8 million as loans held for sale, at fair value, for the remainder of the year.
Schedule of Reverse Mortgage Revenue, Net
The following table presents the estimated fair value of reverse mortgage loans classified as Loans held for sale, at fair value at December 31, 2025 and previously classified as loans held for investment, at fair value. Loans were reclassified to loans held for sale, at fair value (pursuant to the fair value election) at December 31, 2025 as we intend, and agreed to sell the loans to Finance of America Reverse LLC along with the HMBS-related borrowings at book value (determined at closing of the transaction). Based on balances as of December 31, 2025, the gross proceeds from sale are an estimated $195.8 million in aggregate, which comprise $9,703.1 million securitized assets, the associated $9,611.7 million HMBS-related borrowings (or net $91.4 million reverse MSR), and $104.4 million newly originated reverse loans and tails pending securitization - see balances below. Based on balances as of December 31, 2025, the net proceeds of the transaction are expected to be $120.4 million excluding transaction costs, after $69.2 million repayment of warehouse financing of certain assets sold and $6.2 million servicing-related payable. At December 31, 2025, the transaction remained contingent on Ginnie Mae’s approval.
The reverse loans described herein exclude reverse loans pledged as collateral for the asset-backed securitization notes issued by OLIT and certain non HECM loans which are classified as Loans held for sale, at fair value on the face of the consolidated balance sheets for all periods presented.

December 31, 2025December 31, 2024
Unpaid principal balance
$9,333.0 $10,699.5 
Fair value adjustments
474.5 425.8 
Total fair value
$9,807.5 $11,125.3 
The following table presents the composition of reverse mortgage loans by type:
 December 31, 2025December 31, 2024
HECM loans - securitized, pledged to HMBS-related borrowings (1)
$9,703.1 $10,950.8 
New HECM loan originations and HECM loan tails (2) (3) - unsecuritized
104.4 174.5 
Total fair value
$9,807.5 $11,125.3 
(1)The Ginnie Mae securitization of conventional, HECM loans does not qualify for sale accounting treatment and is accounted for as a secured financing transaction, with the recognition of both loans and HMBS-related borrowing on the consolidated balance sheets.
(2)Tails include draws on securitized HECM loans, mortgage insurance premium, servicing fee and other advances which we subsequently securitize.
(3)As of December 31, 2025 and December 31, 2024, the balance includes $58.4 million and $87.4 million, respectively, of new HECM loan originations pending pooling into HMBS (pipeline loans).
The following table presents the components of Gain (loss) on reverse loans and HMBS-related borrowings, net:
Gain (Loss) on Reverse Loans and HMBS-related Borrowings, Net
Years Ended December 31,
202520242023
Gain on new originations (1)
$21.1 $22.8 $20.5 
Net interest income (servicing fee) (2)
31.6 26.2 23.6 
Other change in fair value of securitized loans and HMBS-related borrowings, net
1.2 (9.7)(0.1)
Fair value gains (losses) included in earnings (3)
53.9 39.4 44.0 
HECM hedging derivative gains (losses) (4)
1.6 — — 
Loan fees and other3.2 3.1 2.8 
Total (5)
$58.8 $42.5 $46.7 
(1)Includes the changes in fair value of newly originated loans held for investment in the period from interest rate lock commitment date through securitization date.
(2)Includes the interest income on loans held for investment less the interest expense on HMBS-related borrowings. The net interest income includes the servicing fee Onity is contractually entitled to on securitized loans.
(3)See breakdown between Loans held for investment and HMBS-related borrowings in the table above.
(4)We began separately hedging our reverse exposure to interest rate in the fourth quarter of 2025 (also refer to Note 18 — Derivative Financial Instruments and Hedging Activities).
(5)Reverse mortgage loans were reclassified from loans held for investment, at fair value to loans held for sale, at fair value in November 2025. The amount reported for the year ended December 31, 2025 included $57.2 million as loans held for investment, at fair value, through November 2025 and $1.6 million as loans held for sale, at fair value, for the remainder of the year.