Onity Group Inc.'s latest quarterly 10-Q and simultaneous 8-K filings disclose the termination of a principal subservicing client, Rithm, effective January 31, 2026, which involves the transfer of approximately $8.3 billion unpaid principal balance (UPB) and leads to downsizing operations. Concurrently, the company is selling its reverse mortgage servicing rights portfolio to Finance of America Reverse LLC, aiming for a close in Q3 2026 with net proceeds estimated between $70 million and $80 million. These developments materially reshape Onity’s operational footprint, financial profile, and risk exposure, underscoring the critical need for strategic recalibration amid client concentration risks and regulatory dependencies.