Onity Group Inks $200 Million Financing Pact with Bank of America

On May 5, 2026, Onity Group Inc., a mortgage servicing and lending firm based in West Palm Beach, Florida, submitted Form 8-K to the Securities and Exchange Commission, detailing a new $200 million financing agreement with Bank of America under Item 1.01.

The agreement impacts Onity Group, which services approximately 1.2 million mortgage loans nationwide per its latest annual report, and provides $200 million in term loan funding. This capital targets expansion in reverse mortgage originations and servicing, affecting around 150,000 households in the company's reverse mortgage portfolio based on prior SEC disclosures.

Quarterly results under Item 2.02 report net income of $15.4 million, up 12 percent from the previous quarter, with revenue at $285 million.

Prior to this agreement, Onity Group operated under existing credit facilities totaling $1.5 billion, as noted in its 2025 10-K filing. The new financing, a five-year term loan at an interest rate of SOFR plus 3.25 percent, takes effect immediately and includes quarterly amortization starting in September 2026.

This shifts the company's debt structure by adding $200 million in committed funds, replacing a portion of variable-rate revolver borrowings. Financial exhibits under Item 9.01 include unaudited statements showing total assets of $12.8 billion and liabilities of $11.2 billion as of March 31, 2026.

The agreement sets in motion several operational steps. Onity Group must comply with financial covenants, including a minimum liquidity threshold of $100 million, with potential acceleration clauses if breached, per the Item 1.01 description. The company faces a deadline to incorporate these results into its next Form 10-Q, due by August 15, 2026, which will require detailed notes on the agreement's terms.

Investors can expect updated risk factors in subsequent filings if market conditions affect repayment, triggering standard SEC review processes.

This filing follows Onity Group's 2024 rebranding from Ocwen Financial Corporation, after which it acquired a $3 billion mortgage servicing portfolio in 2025. Congress has not advanced related legislation on mortgage servicing standards since the 2022 updates to the Real Estate Settlement Procedures Act.