Hello and welcome everyone joining today's Onity Group's second 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 1 on your telephone keypad. Please note, this bill is being recorded. 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 Please go ahead.

Good morning, and welcome to Onity Group's second 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, which speak only as of the date they are made, may be identified by reference to a future period or by use of forward-looking terminology and address matters involving assumptions, risks, and uncertainties, including those described in our SEC filings. 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 the 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. We made changes to our non-GAAP methodology this quarter and encourage you to review the presentation's note regarding non-GAAP financial measures. Now, I will turn the call over to Glenn Messina.

Thanks, Valerie. Good morning, and thank you for joining our call. We're looking forward to sharing our results for the second 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 second quarter, our sound strategy and strong operating fundamentals deliver double-digit year-over-year revenue growth and record origination volume. Our balanced business performed well, with rising interest rates driving increased adjusted pre-tax income and servicing, offsetting declining adjusted pre-tax income and origination. We're excited to report we've completed the reverse asset sale to Finance of America, as well as transferred most of the legacy subservicing back to RYTHM. We believe these transactions simplify the business, improve profitability and focus, and increase strategic flexibility. The second quarter net loss includes roughly $33 million of pre-tax costs related to these transactions, as well as market-driven, unfavorable asset fair value adjustments. Finally, considering persistent geopolitical instability, inflation, and market volatility, we expect our full-year 2026 adjusted ROE to be at the low end of our guidance range. Let's turn to slide four to review a few key financial highlights. We again delivered double-digit year-over-year revenue and servicing UPB growth, as well as record origination volume with improved revenue margins versus last quarter. Total servicing additions were up 2.8 times versus prior year, driven by our strong originations and subservicing additions, which exceeded our first-half expectations. Consumer Direct continued to perform well, delivering funded volume up about three times over last year with improved refinance recapture rates. Our net loss includes $9 million of pre-tax costs related to the reverse asset sale and legacy subservicing transfer, as well as $24 million of pre-tax asset fair value change, of which about half is related to reverse. John will provide more details on these costs later in the presentation. Origination adjusted pre-tax income increased over three times versus last year, reflecting lower interest rates, driving higher industry volume levels, as well as improved execution. Servicing adjusted pre-tax income decreased over 60 percent versus last year, as lower interest rates drove an increase in MSR runoff of almost 80 percent versus prior year levels. Our presentation of adjusted pre-tax income now reflects MSR runoff based on actual servicing UPB runoff, and all changes due to rates, inputs, and assumptions are classified as notables. We believe this approach is consistent with certain of our peers and addresses feedback from investors. Let's turn to slide five to discuss the actions we're taking that we believe will improve long-term ROE performance. We are taking focused and deliberate actions to improve ROE long-term that we organize into three categories. Servicing scale, portfolio optimization, and technology-driven productivity. Regarding scale, every $50 billion in servicing can reduce fixed costs per loan by 13%. We continue to target a roughly 50-50 mix of own servicing and subservicing to grow our portfolio on a capital-efficient basis, as well as balance EPS growth and ROE. Our organic growth strategy, focused on delivering positive outcomes for customers, has driven steady servicing portfolio growth. Next is optimizing our own servicing and subservicing portfolios. We've reduced our investment in reverse MSRs because yields are two percentage points lower than forward, and they're not easily leveraged, and they have a higher relative volatility. We are leveraging machine learning using client, asset, and consumer data to identify what we believe are the most profitable MSRs to focus our origination activities and improve returns. In subservicing, we've largely exited the rhythm subservicing and are growing in commercial and reverse, which is more profitable and requires specialized skills and systems, which we have. Finally, technology-driven productivity has been a foundational element of our strategy embedded in our business culture. We've significantly reduced expenses since the acquisition of PHH while delivering servicing portfolio growth and building a top-ten non-bank originations platform from scratch. Robotic process automation, intelligent document processing, and natural language processing have reduced manual effort as well as transformed document management and customer engagement. Future investments are focused on driving additional productivity, improving recapture, and enhancing the customer experience. Let's turn to slide six to review what I believe differentiates oddity from our peers. We've built a strong foundation and a growing customer-focused business by consistently delivering positive and differentiated outcomes for our customers. We're a top 10 non-bank originator, servicer, and subservicer with a balanced and resilient business built to perform through business cycles. Our award-winning technology-enabled platform has been recognized as a top-tier servicer by Fannie Mae, Freddie Mac, and HUD for five consecutive years. Our platform delivers superior operating outcomes for our customers, which when combined with our enterprise sales model, expansive product suite, and diverse capabilities fuels meaningful portfolio growth. We've built a strong foundation by shedding in profitable assets and relationships, investing in talent and technology, and building trust with clients by delivering a positive experience and targeted solutions that create measurable value. We're now growing from a position of strength with a more focused and simplified business with increased strategic flexibility. Let's turn to slide seven to review our balanced business model. While there may be variability in any given quarter due to evolving market dynamics, our balanced business continues to demonstrate long-term resiliency to changes in interest rates. The complementary profitability dynamics of origination and servicing balance each other as interest rates have declined in the 12 months ended, the second quarter of 2026, versus the 12 months ended, the second quarter of 2025. And with interest rates increasing in the second quarter, servicing adjusted pre-tax income has improved, offsetting declining origination income. We continuously optimize operations capacity and scalability, as well as our MSR investment profile, to enable our balanced business model to operate as intended through interest rate cycles. Let's turn to slide eight for more about our growth focus and actions. Our enterprise sales approach and focus on delivering value for clients is producing terrific results. In the second quarter, our originations grew 64% versus prior year, outpacing industry volume growth and achieving record level since we built our platform. We've improved our refinance recapture rate to 51% in the second quarter, up three percentage points versus the prior year, with a roughly three times increase in refinance payoff volume. Our recapture performance has continued to exceed the ICE industry average for the last 12 months, and we believe we're delivering top-tier recapture performance versus our third-party origination-centric peers. With mortgage and straits increasing, we've seen a doubling of home equity product volume versus the second quarter of last year. We believe this is a valuable product for consumers and one that helps us manage operating capacity and improve customer retention. As a reminder, we do not include home equity volume in our refinance recapture rates. Our rich agents team is performing very well, and we're continuing to invest in technology and process optimization to enhance the customer experience, reduce costs, and improve scalability and competitiveness.

Let's turn to slide nine to see what we're working on.

We're embedding AI, analytics, and automation across our lending platform to improve our recapture rate by increasing capacity and improving human performance. We are using voice agents to support customer communication across several aspects of the lending and servicing process. Voice agents create historically unparalleled capacity to engage followers seeking to refinance or access their home equity and generate actionable leads for our sales team. This is driving improved connectivity with customers and increasing engagement, which in turn drives increased blocks and fundings. AI call monitoring analytics provide insights to optimize marketing, improve opportunity identification, fine-tune value propositions, and improve sales performance. Real-time agentic AI integration through our partnership with Blend is aimed at optimizing customer and employee workflows and providing a faster, more guided experience. Technology allows us to turn interactions, bar signals, and workflow events into intelligence that drives superior recapped performance and customer experience. It's clear that our investments are delivering tangible results, and we remain excited about the future potential of our investment pipeline. Let's turn to slide 10 to discuss subservicing. The disruption created by industry consolidation among subservicers continues to create opportunities We are winning new clients with strong platform performance and a compelling value proposition. First Hap's subservicing additions of $35 billion exceeded our guidance with key wins with capital partners, banks, and independent mortgage banks, and we continue to have an active opportunity pipeline across all three segments. We're excited about the growth we're seeing in business purpose residential and commercial subservicing driven by our expanded product offerings. UPB is up 25% versus prior year, and we renamed the servicer on our first single-family rental securitization for a top-tier client in that space. We continued to invest in technology to improve transparency, increase turn times, and client service functionality. Our efforts are yielding results, as evidenced by our client net promoter score of 70 in the first half of 2026, a level wrangling some of the best service organizations. Let's turn to slide 11 to talk about how we've grown our servicing portfolio. Total servicing UPB ended the quarter up 10% year-over-year versus total industry servicing growth of 3% with growth in both owned MSR and subservicing. Year-over-year servicing additions, net of runoff of $76 billion was largely driven by organic growth, and more than offset plan transfers to Rhythm and other client asset sale-driven de-boardings. With MSR demand keeping prices elevated, we continue to see clients monetize their older MSRs while replenishing their portfolio with new originations. There should be no question as to our ability to compete for business and grow our servicing portfolio. Our double-digit portfolio growth, despite the Rhythm transfer and client MSR sales, highlights the strength of our value proposition and the power of our origination capability. Now, I'll turn it over to Sean to discuss our financial results in more detail.

Thanks, Glenn. Let's turn to slide 12, where we describe the impact to GAAP pre-tax income. The main story here is that the bulk of the decline in pre-tax income, about $24 million, is due to non-recurring transaction costs or fair value marks on reverse assets. ongoing operations and servicing was the strongest contributor to the six million dollar increase in gap pre-tax income quarter over quarter the finance of American transaction and to a lesser extent costs associated with the rhythm deboarding created a nine million dollar negative one-time impact in the quarter this was further exacerbated by a decline in the fair value of the reverse assets due to mark-to-mark impacts primarily less favorable HECM spreads The majority of these assets, about 80% of the fair value, have been sold to Finance of America. Thus, the impact of fair value changes on the remaining portfolio will be greatly reduced. Furthermore, the assets we are retaining are older and have less sensitivity to spread movements given their shorter duration. The remaining mark-to-market impacts were due to a mild increase in delinquency as well as hedge costs. Regarding delinquencies, if you refer to the appendix page on MSR evaluation, you will see the 30-plus delinquency bucket on GSEs deteriorated. However, the Gini-Made delinquency buckets improved quarter over quarter. The 30-plus category is the most volatile measure, so we focus more on the longer periods, such as the 60 and 90-plus. We are closely monitoring the portfolio for any indications of longer-term stress on borrowers. The final impact is $4 million due to both hedge costs and fair value inputs, which is a small percentage of the $2.5 billion fair value MSR book that we hedge. Please turn to slide 13 for a perspective on MSR fair value impacts. This graph shows three different drivers of MSR fair value broken into runoff, rates net of hedge, and inputs and assumptions. Runoff is the actual MSR value of unpaid principal balance that either paid in full or amortized during the quarter. Then we show the impact of interest rates, net of hedge, and finally MSR fair value changes from inputs and assumptions. This last category includes changes in loan characteristics such as delinquency status, borrower escrow payments, assumptions for prepayments, loan defaults, servicing costs, ancillary income, discount rate, and changes in bulk market MSR prices, all of which impact modeled cash flows and MSR fair value. Runoff is always detrimental to net income and can increase due to several variables, including higher prepayment speeds due to lower interest rates. You can see this impact from Q425 through the current quarter when we had several refinance surges due to a temporary but meaningful drop in mortgage rates. Another driver of runoff is portfolio size, which has been increasing. With respect to the other categories, both interest rates, net of hedge, as well as input and assumptions become smaller drivers when considered across multiple quarters in a cumulative fashion. The average of either of these categories shows a volatility of about plus or minus three basis points. That's why we show these impacts in notables, which impacts net income but do not include them in adjusted pre-tax income, given the periodic volatility or swings. We believe this is similar to several large competitors in our space. Please turn to slide 14 for a similar view of reverse. Here you can see that the reverse book experiences far more volatility than the forward book. The impact from interest rates and inputs and assumptions are both materially greater as a percentage of the total balances in reverse compared to Ford on the prior page. This shows how our recent sale of the majority of this book should lessen MSR, fair value volatility, going forward. Please turn to slide 15 for a recap of key financial measures. The revenue is up 24%, continuing the strong year-over-year growth trend. Both servicing and originations contributed to the year-over-year growth in revenue due to higher volumes and stronger execution, which included improved recapture, reduced servicing advances, and better data analytics. Sequential revenue growth was up slightly as servicing increased more than the origination This is primarily due to growth in the owned MSR volume driving revenues. Operating efficiency continued to improve on a 12-month trailing basis, which reflects our long-term focus on cost-effective growth, and book value per share is up significantly, about $13 year-over-year. Please turn to slide 16 for detail on originations. Originations pre-tax income grew by over three times on a year-over-year basis, driven by higher volume across the combined business. The $15.5 billion of funded volume in the second quarter was our largest quarter in The strongest contributor was the B2B channel. This is correspondent lending and co-issue. The volume improvement did not come at the expense of margins, as those also improved due to our strong enterprise sales efforts and continued improvements on analytics to drive margin management. Consumer direct remained profitable but generated lower adjusted pre-tax income from two drivers. The first is lower lock volume in the second quarter by 30% quarter over quarter. Lock volume is a key metric for recognizing revenue. The second is elevated consumer direct operating expense due to lagging commissions from the first quarter refinance surge. With respect to staffing, our objective is to balance efficiency with flexibility. We optimize our capacity levels to balance current earnings growth and accommodate any future interest rate decline. Hence, our origination staffing is at levels to support higher-than-current volumes. Both B2B and consumer-direct channels benefited from a continued focus on growing new products, including non-QM and second liens. Second liens have more than doubled in volume year-over-year, with over $70 million funding in the second quarter. Please turn to slide 17 for our servicing performance. Starting with the middle graph, strong owned MSR growth helped drive servicing revenues up 13% from the prior year and 3% sequential quarter. Servicing adjusted pre-tax income improved on a sequential quarter due to better float income and better runoff as mortgage rates stayed elevated in the second quarter. Year over year, adjusted pre-tax income is still lower, driven primarily by higher runoff, which you can see at the bottom of the right graph, which is then partially offset by improved revenues. Please turn to slide 18 for details on improved advances in servicing. Building on the strong improvements we saw last quarter, servicing continues to improve the advanced balances with a 33 percent decline over the last two years. This comes even as we grow own servicing UPB as we focus on the small percentage of loans that drive the most advances. As you can see by the dark blue graphs, the bulk of our advances are linked to delinquencies in our non-agency-owned MSR book. We have been deploying various strategies, such as AI-enabled agents that assist our contact center in quickly providing the most effective range of solutions for the borrower. As we scale AI-powered solutions for our contact center, we are targeting an annual savings of about $3 million at our current portfolio size. Slide 19 gives our approach to capital allocation. Our considerations for capital deployment focus on organic growth, liquidity, and returning capital to investors. Organic growth includes adding owned MSR via profitable originations activity. Other examples include broadening our product offering for both originations and servicing. In parallel, we maintain sufficient liquidity to ensure we meet both regulatory and lender requirements, as well as holding enough buffer for various stress scenarios. We also consider ways to return capital to investors. Our 10Q provides information on the recently completed $10 million share buyback, as well as the ongoing $20 million buyback, which reflect the value we see in acquiring shares that are priced materially lower than book value. On slide 20, we provide our updated view on 2026 guidance. As Glenn mentioned earlier, we are guiding to the lower end of the adjusted pre-tax income range of 10 to 15 percent based on current market conditions and the first half results. The other areas we provide guidance on are unchanged. We continue to grow our total servicing book with strong growth this most recent quarter, improve our operating efficiency, and maintain strong hedging performance. Back to you, Glenn.

Thanks, Sean. Let's turn to slide 21 for a few comments before we open the call for questions. Anati is a top 10 non-bank mortgage originator, servicer, and subservicer with a balanced and resilient business that is winning and growing in our target markets. Our second quarter results demonstrate that our growth strategy is sound and our operating fundamentals are strong. We've built a technology-enabled, award-winning platform that is efficient, delivers differentiated performance, and excellent service. We are taking focused and decisive actions to improve ROE over the long term, organized into three categories, increasing servicing scale, portfolio optimization, and technology-driven productivity. To that end, we believe the reverse asset sale to Finance of America and the legacy subservicing transfer simplify the business, improve profitability and focus, and increase strategic flexibility. With a strong foundation, simplified business, and greater flexibility, we believe we are well positioned to navigate the current environment, capitalize on attractive opportunities, and continue delivering sustainable, prudent growth. All this adds up to a business that delivers adjusted ROE comparable to our peers with increasing scale and market position at a more attractive valuation. With that, operator, let's open the call for questions.

Thank you. And if you would like to ask a question, please press star 1 on your telephone keypad. To leave the queue at any time, press star 2. Once again, that is star and one, to ask a question. We will take our first question from Bose George with KBW. Please go ahead. Your line is open.

Hey, guys. Good morning. This is Frank Dillabedi on for Bose. I just want to start. You guys nicely laid out the goals for your pre-tax adjusted ROE range. Can you just help quantify what bridges the gap to the lower end of the range, given you're in the 9% range currently, and the market is pretty volatile. So, yeah.

Good morning.

So, look, based on the ROE expansion actions that we laid out in the presentation on page five, in terms of driving, improving servicing scale, optimizing the servicing portfolio, and then obviously continue to drive productivity, look, we believe those are going to help us improve the ROE of the business despite some of the volatility that exists in the marketplace. Where we really saw some of that volatility hit us in the past is the loan origination pipeline hedging. We saw a lot of noise in that during the first quarter of this year, and that's in the second quarter that seemed to behave a lot better. We saw improved margins in the origination space, even though there continues to be market volatility, and we'd have record origination volumes as well, too. So, look, we feel good about the actions we're taking to drive improved adjusted pre-tax ROE, and we feel a little bit better about our ability to manage some of the volatility that we've experienced in the first half of the year. So, yeah, those are the actions that we think get us into the ROE range. Sean, anything you want to add?

Yeah. Hey, Frankie. I'd add that some of the pressure we've seen on adjusted pre-tax income over the last three quarters has been very high runoff. If rates do stay elevated, you know, that theoretically should improve over time. That improves servicing's adjusted pre-tax income, and we continue to show an ability to generate pre-tax income in originations, even a rather difficult quarter like the one that just happened.

Thank you.

That's very helpful. And then just a little more broadly, you know, banks had a pretty meaningful increase in volumes and taking share during the quarter. How do you see them evolving in the market? And then secondly, in the correspondent channel, can you just talk about competition you're seeing there, especially at the GSC cash window? Thanks.

Sure. So, Frankie, look, you know, banks have always been a force to be reckoned with. When they want to play in this space, they typically come in and buy and buy aggressively. And, you know, quite frankly, we're seeing a number of bank buyers of MSRs in the marketplace, you know, during the first half of this year, who have, you know, a seemingly insatiable desire for MSR assets. That's net-net. We think that's good for valuations, but obviously, you know, creates, you know, an interesting competitive dynamic. You know, if the bank capital regulations, proposed relaxing of bank capital regulations for holding MSRs change, you know, look, I think there's a number of financial institutions which, I should say, banks who, you know, have strong mortgage franchises today. They'll continue to grow them, you know, based on, you know, our conversations with experts around, you know, the banking industry doesn't seem to be a whole lot of folks who would be, you know, considering a wholesale change in their strategy of, you know, I'm going to go, I'm not a mortgage today. I'm going to go gangbusters. That's not the predominant thinking. You know, those who are in will likely get bigger and increase their franchise. That said, it makes businesses like ours more valuable in the sense that if somebody is thinking about getting into the mortgage space, it's hard to start de novo. If you want to get in, you get in with scale. And you look at a business like ours that has billions of dollars of custodial and escrow deposits, which are considered to be sticky deposits, that's an interesting situation. I think, you know, would maybe, you know, how banks think about looking at, you know, non-bank mortgage companies. You know, in terms of competition in the correspondence space, you know, look, I think our correspondent team is just doing a phenomenal job. They are focused on value-based selling using an enterprise sales strategy. and, you know, luck, our ability to achieve record origination volumes where, you know, frankly, industry origination volumes, you know, with rates up are, you know, not looking as encouraging as they were in the first quarter. You know, the team's just doing a phenomenal job. And, again, I think as Sean talked about, you know, margins increase, you know, from 23 to 26 basis points as well. So, look, you know, Correspondent has always been competitive, and it's the most competitive, well, maybe compared to Broker, but it might be second most competitive space in the industry. But, you know, I think our team is just doing a terrific job there, really proud of them. And, you know, again, that's part of why we were able to achieve record origination volumes.

Thank you.

Thank you. Our next question comes from Randy Boehner with Texas Capital. Please go ahead.

Randy Boehner Hey, good morning. Thanks. This is all very helpful, and so I'd like to, if I can, just ask about the ROE again and maybe play some of that back because it was lower in the first quarter. I just want to make sure my model is kind of reflecting getting to that, you know, 10%. And so kind of isolating it to three things, and I just want to – I'd love to kind of hear your thoughts or feedback on this. So one, you know, you're going to have an ongoing buyback, so that helps the denominator. If you can comment on kind of your plan to execute on that, that'd be helpful. The second thing is, you know, your other revenue line has been better, at least versus our expectation. And, you know, understanding what that is and the sustainability of that other revenue line is just marginally helpful. And then the third thing, and most importantly, is that, and you've said this kind of quite clearly, the MSR mark should be more stable, I think, because of everything you've laid out. You know, your program plus, you know, your program is augmented more broadly and reverse going away will make it more stable. But how do we, you know, how do we keep track of that? Do we look at the move index on Bloomberg, or, like, how do we judge that lower kind of vol in MSR as we get through the third quarter and even the fourth quarter? So, sorry, that was a lot there, but just trying to, you know, build the building blocks to the low end of the ROE.

Yeah, good morning, Randy. A couple of things here. So, let me start with the share buyback program. You know, we completed the $10 million authorization from the board. You know, the board then reauthorized another $20 million in share repurchases. You know, when our queue comes out later today, you'll see in our queue the amount of shares we've bought back and, you know, the dollar volumes and average share price. And we're continuing to, you know, it's a 10B5-1 program. It continues to execute, and that's going to run its course. So, you know, the share buybacks should continue, you know, generally at the rate that we saw in the, you know, in the second quarter. And again, that'll be disclosed in our queue. As it relates to, you know, MSR volatility, you know, I'd say the volatility in our MSR, forward MSR, so I want to separate forward from reverse. Volatility in the forward MSR certainly has been, as Sean pointed out in his charts, within the range of what I call the reasonable expectation for volatility. So, you know, net net, you know, when you look at the forward MSR change due to rates, inputs and assumptions, it was about a four million dollar net expense or net cost in the second quarter versus basically break even in the first quarter. So slight deterioration on one of Sean's charts. I think he showed a four million dollar unfavorable change. But, you know, when I look at it, it's, you know, it was zero to four million loss. So on $150, $170 billion at MSR-UPB, very small range there. Delinquency trends, that was the next thing Sean talked about. We did see an improvement in the GMA delinquencies, as we would have expected. We saw an uptick in GSE delinquencies, Sean. It looks like those are beginning to abate, and we're seeing those return to normal. So we feel pretty good about the consumer. We're not seeing anything that would suggest in the next six months there's going to be a radical shift in consumer payment behavior. It's going to be seasonality that always happens, right? So I think the forward MSR volatility is much, I think, is well-controlled, and it's within the range. Our capital markets team is doing a terrific job managing that asset. On the reverse side, I've got to tell you, we saw an extreme amount of volatility in that asset between the first and second quarter. To give you an order of magnitude, in the second quarter, net unfavorable fair value adjustments to rates, inputs, and assumptions of about $12 million on the reverse MSR. And that's on a UPB of about $10 billion, sorry, $12 million on $10 billion, which when you think about it in a relative scale as compared to the forward side, just the volatility is off the charts. And in the first quarter, it was a $4 million good guy, right, or a $3 million good guy. And that's how you get to the $15 million swing that Sean showed on his chart. So by virtue of decreasing or selling about 80% of our MSRs to Finance of America, who is much better equipped as a solely reverse mortgage-focused company to deal with that volatility and address it, I think on a go-forward basis, we would expect to see much less volatility in the reverse MSR. Randy, I may have missed your second point.

Yeah, that was super helpful, and that love, the detail is helpful just to have confidence and, you know, kind of modeling a lower ball around the MSRs. The other, the third question I had, and these are just, again, this is just me looking at the numbers and trying to identify the three kind of moving pieces, but incrementally, at least for me, the other revenue line has performed well year to date. And so the question is, what's in that other revenue line? Like, what is it? And then, you know, is it sustainable to kind of deliver 20 mil of revs? You know, because it's consistently had that number 19.1 and 20.4 in the first and second quarter, respectively. So is that sustainable? And what is it?

Sean, I'll turn it over to you. Maybe just to tee it up for you, there's probably escrow earnings and things like that are falling into that other revenue line, but I'll turn it over to you.

Hey, Randy, how's it going? Yeah, that is driven somewhat by ancillary income that we get off of higher owned MSRs. And so as you see the growth in our owned MSRs, you're going to see that both on the top line where you see servicing and subservicing fees, and then as well as some data and other revenue net. And so, yeah, we think that is sustainable and, you know, continue to look for that as well as gain on sales to continue to drive growth.

All right, great. And then if I can just do one follow-up on a comment that Glenn made that I had observed in the market as well, so I love your insight, but you said you mentioned some of the GSE delinquencies had bumped up and then, but now are improving. It just, I just want to like focus on that. Is that, is that what you, is that the case? And if so, do you know what, what kind of caused those to go higher and then improve?

Yeah, so we did see a bump up in particularly the 30-day bucket in GSE delinquencies. And you'll see that, you know, if you look in our earnings supplement, there's the MSR evaluation page and you'll see that the, you know, delinquencies in GSE spiked up and largely sitting in the 30-day bucket. You know, look, based on some of our work looking historically over the past couple of years, there's this unusual seasonal spike in delinquencies right around the 4th of July holiday. And I don't know what it is and what the consumer psyche is around it, but we do tend to see delinquencies, 30-day delinquencies rise just in the month of June before the 4th of July holiday. and then fall after the 4th of July holiday. So, Sean, any more insights you want to put into that?

Our servicing leaders speculate that that's because people actually end up missing, you know, depending where the holiday falls, then they make two payments in the month of July. And you'll see seasonally a lot of times the 30-plus recovers in the following month. So we see details on July. We can't go too much into that. But, you know, I'd add that changes in 30-plus are, you know, kind of could be seasonal, could be driven by many things. We tend to look at the 60 and the 90-plus metrics for longer-term impacts. You know, we can monitor that going forward, of course.

I guess people are just too busy going to the beach and living their lives to pay that check, that bill. But they catch up, so I guess that's good. Okay, thanks. Appreciate the answers.

Thank you. And once again, if you would like to ask a question, please press star 1 on your telephone keypad. We will pause for a moment to allow any further questions to queue. And at this time, there are no further questions in queue. I will now turn the meeting back to Glenn Messina for closing comments.

Thanks, Nikki. And certainly thanks to all our shareholders and our key business partners for your support of the NLT business. I also want to thank and recognize the board of directors and the global business team for all their hard work and commitment to our success. And I look forward to updating you on our progress on our next earnings call. Thank you so much.

Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.