Onity Group Inc.

Hello and welcome everyone joining today's Onity Group's first quarter earnings and business update conference call. At this time, all participants are in a listen only mode. Later, you will have the opportunity to ask questions during the question and answer session. To register to ask a question at any time, please press star one on your telephone keypad. Please note this call is being recorded. and we are standing by if you should need any assistance. It is now my pleasure to turn the meeting over to Valerie Hartel, Vice President, Investor Relations. Please go ahead.

Good morning, and welcome to Onity Group's first quarter 2026 earnings call. Please note that our earnings release and presentation are available on our website at onitygroup.com. Speaking on the call will be Chair, President, and Chief Executive Officer, Glenn Messina, and Chief Financial Officer, Sean O'Neill. As a reminder, our comments today may contain forward-looking statements made pursuant to the safe harbor provisions of the federal securities laws. These statements may be identified by reference to a future period or by use of forward-looking terminology and address matters that are uncertain. Forward-looking statements speak only as of the date they are made and involve assumptions, risks, and uncertainties, including those described in our SEC filings. In the past, actual results have differed materially from those suggested by forward-looking statements, and this may happen again. In addition, the presentation and our comments contain references to non-GAAP financial measures, such as adjusted pre-tax income. We believe these non-GAAP measures provide a useful supplement to discussions and analysis of our financial condition because they are measures that management uses to assess the performance of our operations and allocate resources. Non-GAAP measures should be viewed in addition to and not as an alternative for the company's reported GAAP results. A reconciliation of these non-GAAP measures to their most directly comparable GAAP measures and management's reasons for including them may be found in the press release and the appendix to the investor presentation. Now, I will turn the call over to Glenn Messina.

Thanks, Valerie. Good morning, everyone, and thank you for joining our call. We're looking forward to sharing our results for the first quarter, as well as reviewing our strategy and financial objectives to deliver long-term value for our shareholders. Let's get started on slide three. In the first quarter, we delivered double-digit year-over-year growth in adjusted revenue, origination volume, subservicing additions, and total servicing UPV. Our balanced business performed well in the face of record prepayments with origination profitability partially offsetting higher MSR runoff in servicing. First quarter results were impacted by heightened interest rate and financial market volatility, higher than expected refinancing activity, and increased FHA late-stage delinquencies driven by recent changes to the FHA loan modification rules. We are taking decisive actions to address these items while continuing to execute on our growth initiatives and the fundamentals of our balanced business model, which has proven resilient over the long term. As a result of discussions with Ginnie Mae, we've revised our recent proposed strategic partnership with Finance of America Reverse and resubmitted the transaction for approval. Finally, considering ongoing market volatility due to geopolitical events, we are revising our full year 2026 adjusted ROE guidance to 10 to 15%.