PHH Mortgage Receives Residential Servicing Ratings Upgrade from Fitch Ratings

Rhea-AI Summary

PHH Mortgage, a subsidiary of Onity Group Inc. (NYSE: ONIT), has received significant upgrades to its residential servicing ratings from Fitch Ratings, with a Stable Rating Outlook. The upgrades include improvements in Prime, Subprime, and Alt-A products to 'RPS2-' from previous lower ratings, along with upgrades in Special servicing and Closed-End Second Lien/HELOC products. The company's commercial small balance and residential master servicing ratings were affirmed. The upgrades reflect PHH's balanced business strategy, operational discipline, and growth across multiple channels. Key factors driving the ratings include the company's diversification between Originations and Servicing, recognition by major housing agencies, enhanced technology implementation, risk management framework, and experienced management team.

Positive

• Significant ratings upgrade from Fitch across multiple service categories
• Recognition as Tier 1 servicer by HUD and excellence programs by Fannie Mae and Freddie Mac
• Growth in MSR retention and expanded product offerings
• Strong risk management framework with three lines of defense approach

Negative

• None.

News Market Reaction

-1.64%

1 alert

-1.64% News Effect

On the day this news was published, ONIT declined 1.64%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

WEST PALM BEACH, Fla., June 04, 2025 (GLOBE NEWSWIRE) -- PHH Mortgage (“PHH” or the “Company”), a subsidiary of Onity Group Inc. (NYSE: ONIT) and a leading non-bank mortgage servicer and originator, today announced that Fitch Ratings has upgraded its residential primary servicer ratings and indicated a Stable Rating Outlook.

Fitch’s most recent ratings upgrades, which are generally considered Above Average, include:

• Prime product upgraded to ‘RPS2-’ from ‘RPS3+’
• Subprime product upgraded to ‘RPS2-’ from ‘RPS3+’
• Alt-A product upgraded to ‘RPS2-’ from ‘RPS3’
• Special servicing upgraded to ‘RSS2-’ from ‘RSS3’
• Closed-End Second Lien and HELOC products upgraded to ‘RPS3+’ from ‘RPS3’
  
  

In addition, Fitch affirmed the Company’s commercial small balance primary and special servicer ratings at ‘SBPS2-’ and ‘SBSS2-’, respectively, and residential master servicing rating at ‘RMS3’.

“The ratings upgrade from Fitch reflects the strength of our balanced and diversified business and our commitment to operational and financial discipline while driving growth across multiple channels,” said Scott Anderson, Executive Vice President and Chief Servicing Officer. “We are extremely proud of the industry top-tier servicing platform we have built and our experienced team that is dedicated to creating positive outcomes for our customers. As the mortgage market and consumer needs evolve, we continue to make purposeful investments to elevate the customer experience and implement innovative technology solutions for the benefit of our customers, clients, investors and employees.”

Key drivers of PHH’s upgraded and affirmed ratings and Stable Outlook:

• Reflect the Company’s growth strategy and diversification between Originations and Servicing businesses
• Industry recognition for servicing excellence by Fannie Mae STAR^TM and Freddie Mac SHARP^SM programs, and rated a Tier 1 servicer by HUD
• Acceleration of the Company’s growth strategy through increased MSR retention, expanded product offerings, and improved recapture rates in its Consumer Direct channel
• Utilization of enhanced technology for increased customer engagement and personalized services
• Multi-layered enterprise risk management framework with a three lines of defense approach
• Highly tenured management team

For more information on Fitch’s ratings announcement, please read here.

About Onity Group

Onity Group Inc. (NYSE: ONIT) is a leading non-bank financial services company providing mortgage servicing and originations solutions through its primary brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the largest servicers in the country, focused on delivering a variety of servicing and lending programs to consumers and business clients. Liberty is one of the nation’s largest reverse mortgage lenders dedicated to providing loans that help customers meet their personal and financial needs. We are headquartered in West Palm Beach, Florida, with offices and operations in the United States, the U.S. Virgin Islands, India and the Philippines, and have been serving our customers since 1988. For additional information, please visit onitygroup.com.

For Further Information Contact:

Investors:

Valerie Haertel, VP, Investor Relations
(561) 570-2969
shareholderrelations@onitygroup.com

Media:

Dico Akseraylian, SVP, Corporate Communications
(856) 917-0066
mediarelations@onitygroup.com

FAQ

What ratings upgrades did PHH Mortgage (ONIT) receive from Fitch in June 2025?

PHH Mortgage received upgrades in multiple categories: Prime, Subprime, and Alt-A products to 'RPS2-', Special servicing to 'RSS2-', and Closed-End Second Lien and HELOC products to 'RPS3+'.

What factors led to PHH Mortgage's ratings upgrade by Fitch?

The upgrade was driven by PHH's balanced business strategy, operational discipline, growth across channels, recognition by housing agencies, enhanced technology implementation, risk management framework, and experienced management team.

How does the Fitch ratings upgrade impact PHH Mortgage's business outlook?

The ratings upgrade reflects a Stable Rating Outlook and strengthens PHH's position as a leading non-bank mortgage servicer, validating their business strategy and operational excellence.

What key business improvements has PHH Mortgage implemented?

PHH has increased MSR retention, expanded product offerings, improved recapture rates in Consumer Direct channel, enhanced technology for customer engagement, and implemented a multi-layered enterprise risk management framework.