What changed in this filing

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Item 1. Business

2022-02-11 compared with 2021-02-09 · 128 added, 98 removed, 146 unchanged (61% of the section changed)

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This report combines the Annual Reports on Form 10-K for the year ended December 31, 2021 for OneMain Holdings, Inc.

(“OMH”), a financial service holding company, and its wholly-owned direct subsidiary, OneMain Finance Corporation (“OMFC”) (formerly known as Springleaf Finance Corporation (“SFC”)).

(“OMH”), a publicly held financial service holding company, and its wholly owned direct subsidiary, OneMain Finance Corporation (“OMFC”).

OMFC is the issuing entity of our outstanding public debt securities and all of OMFC’s common stock is owned by OMH.

The information in this combined report is equally applicable to OMH and OMFC, except where otherwise indicated.

OMH and OMFC are referred to in this report, collectively with their subsidiaries, whether directly or indirectly owned, as “the Company,” “we,” “us,” or “our.”

As one of the nation’s largest non-prime consumer finance companies, we:

OMH and OMFC are referred to in this report, collectively with their subsidiaries, whether directly or indirectly owned, as “the Company,” “OneMain,” “we,” “us,” or “our.”

As one of the nation’s leaders in offering nonprime customers responsible access to credit, we:

• provide responsible personal loan products;

• offer credit card products;

• offer optional credit insurance and other products;

• service loans owned by us and service loans owned by third-parties;

• offer a customer-focused financial wellness program;

• service loans owned by us and third parties;

• pursue strategic acquisitions and dispositions of assets and businesses, including loan portfolios or other financial assets;

• may establish joint ventures or enter into other strategic alliances.

We provide origination, underwriting and servicing of personal loans, primarily to non-prime customers.

We provide origination, underwriting, and servicing of personal loans, primarily to nonprime customers.

In addition, we offer two credit cards, BrightWay and BrightWay+, through a third-party bank partner from which we purchase the receivable balances.

We believe we are well positioned for future growth, with an experienced management team, proven access to the capital markets, and strong demand for consumer credit.

At December 31, 2020, we had $18.1 billion of personal loans due from approximately 2.3 million customer accounts.

Our network of approximately 1,500 branches in 44 states is staffed with expert personnel and is complemented by our online personal loan origination capabilities and centralized operations staff, which allow us to reach customers in person, digitally, and over the phone.

At December 31, 2021, we had $19.2 billion of finance receivables due from approximately 2.40 million customer accounts.

We also service personal loans for our whole loan sale partners, which we commenced during the first quarter of 2021.

At December 31, 2021, we managed a combined total of 2.45 million customer accounts and $19.6 billion of managed receivables.

Our branch network of approximately 1,400 locations in 44 states is staffed with expert personnel and is complemented by our online personal loan origination capabilities and centralized operations staff, which allow us to reach customers in person, digitally, and over the phone.

Our digital platform provides our current and prospective customers with the option of applying for our products via our website, www.omf.com .

Prior to June 25, 2018, Springleaf Financial Holdings, LLC (“SFH”) owned approximately 44% of OMH’s common stock.

SFH was owned primarily by a private equity fund managed by an affiliate of Fortress Investment Group LLC (“Fortress”).

On June 25, 2018, an investor group led by funds managed by affiliates of Apollo and Värde (the “Apollo-Värde Group”) completed its purchase from SFH of 54,937,500 shares of OMH's common stock, par value $0.01 per share, at a purchase price per share of $26.00 for an aggregate purchase price of approximately $1.4 billion in cash (the “Apollo-Värde Transaction”).

Upon closing of the Apollo-Värde Transaction, OMH entered into an Amended and Restated Stockholders’ Agreement, the terms of which are described in the OMH Current Report on Form 8-K filed with the SEC on June 25, 2018.

As provided for in the Amended and Restated Stockholders’ Agreement, the Apollo-Värde Group has designated six of OMH's nine directors.

At December 31, 2020, the Apollo-Värde Group owned approximately 40.9% of OMH’s common stock and is OMH’s largest stockholder.

As part of our ongoing efforts related to the integration of Springleaf and OneMain, on September 20, 2019, SFC entered into a merger agreement with its direct parent, Springleaf Finance Inc.

(“SFI”), to merge SFI with and into SFC, with SFC as the surviving entity.

The merger was effective in SFC's consolidated financial statements as of July 1, 2019.

As a result of SFI's merger with and into SFC, SFC became a wholly-owned direct subsidiary of OMH.

Effective July 1, 2020, SFC was renamed to OMFC.

The name change did not affect OMFC’s legal entity structure, nor did it have an impact on OMH’s or OMFC’s financial statements.

OMFC is used in this report to include references to transactions and arrangements occurring prior to the name change.

The following chart summarizes our organization structure.

The chart is provided for illustrative purposes only and does not represent all of our subsidiaries.

INDUSTRY AND MARKET OVERVIEW

We operate in the consumer finance industry serving consumers who have limited access to credit from banks, credit card companies, and other traditional lenders.

Using November 2020 data from Experian, we estimated that there are approximately 102 million U.S.

borrowers in our target market, who collectively have approximately $1.2 trillion of outstanding borrowings in the form of personal loans, vehicle loans and leases, and credit cards.

Using third party market data as of December 2021 and internally aligning to our current product offerings and customer credit scores, we estimate U.S.

nonprime consumers collectively have approximately $1.1 trillion of outstanding borrowings in the form of personal loans, auto loans and leases, and credit cards.

We believe this large market provides us with an attractive growth opportunity.

We are one of the few national participants in the consumer installment lending industry.

Our national branch network and digital platform, combined with our centralized operational capabilities, provide a platform to efficiently and responsibly serve this market.

Our national branch network and digital platform, combined with our centralized operational capabilities, provide an opportunity to serve this market efficiently and responsibly.

In addition, credit card offerings continue to deepen our existing customer relationships, attract new customers, and furthers our vision to become the lender of choice for nonprime customers.

We believe we are well-positioned to capitalize on the significant growth and expansion opportunity within our industry.

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At December 31, 2021, Consumer and Insurance (“C&I”) was our only reportable segment.

We originate and service secured and unsecured personal loans and offer optional credit and non-credit insurance and related products through our combined branch network and our centralized operations.

Personal loan origination and servicing, along with our insurance products, form the core of our operations.

Our branch operations included approximately 1,500 branch offices in 44 states as of December 31, 2020.

We originate and service secured and unsecured personal loans, offer credit cards, and provide optional credit and non-credit insurance and related products through our branch and centralized operations as well as our digital platform.

Personal loan origination and servicing, credit cards, and insurance products form the core of our operations.

Our branch network included approximately 1,400 locations in 44 states as of December 31, 2021.

In addition, our centralized support operations provide underwriting and servicing support to branch operations.

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Products and Services.

Our personal loan portfolio is comprised of assets that have performed through various market conditions.

Our personal loan business comprises products and services that have performed well through various market conditions.

Our personal loans are non-revolving, with a fixed-rate, fixed terms generally between three to six years, and are secured by automobiles, other titled collateral, or are unsecured.

Our secured personal loans include direct auto loans, which are typically larger in size and based on the collateral of newer cars with higher values.

Our secured personal loans include direct auto loans, which are typically larger in size and based on the collateral of newer autos with higher values.

Our loans have no pre-payment penalties.

Credit cards are open-ended, revolving, with a fixed rate, and are unsecured.

We offer the following optional credit insurance products to our customers:

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We offer optional membership plans from an unaffiliated company.

We have no risk of loss on these membership plans, and these plans are not considered insurance products.

We have no direct risk of loss on these membership plans, and these plans are not considered insurance products.

We recognize income from this product in other revenues — other.

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We also offer Guaranteed Asset Protection (“GAP”) coverage as a waiver product or insurance.

GAP provides coverage in an event of a total loss to the auto, all or part of the difference between what the customer owes on their auto loan and the payment amount made by the customer’s primary auto insurance.

GAP provides coverage in an event of a total loss to the auto, covering all or part of the difference between what the customer owes on their auto loan and the payment amount made by the customer’s primary auto insurance.

Should a customer fail to maintain required insurance on property pledged as collateral for the finance receivable, we obtain collateral protection insurance, at the customer’s expense, that protects the value of that collateral.

Customer Development.

We staff each of our branch offices with local well-trained personnel, including professionals who have significant experience in the industry.

Our business model revolves around an origination, underwriting, and servicing process that leverages our local community presence.

We staff each of our branch locations with local well-trained personnel, including professionals who have significant experience in the industry.

Our business benefits from an origination, underwriting, and servicing process that leverages our local community presence.

Our customers often develop a relationship with their local office representatives, which we believe not only improves the credit performance of our personal loans but also leads to additional lending opportunities.

We solicit prospective customers, as well as current and former customers, through a variety of direct mail offers and targeted online advertising.

We solicit customers through a variety of direct mail offers, targeted online advertising, search engines, e-mail, and internet loan aggregators.

We use proprietary modeling, along with data purchased from credit bureaus, alternative data providers, and our existing data/experience to acquire and develop new and profitable customer relationships.

Our digital platform allows current and prospective customers the ability to apply for and close a personal loan online, at www.omf.com .

We started building our digital capabilities in 2018 and by early 2020, we successfully launched our digital user experience, which includes two-way video, chat, and co-browsing with customers.

This has helped us to simplify and optimize the customer experience.

Many of our new customer applications are sourced online, delivered via targeted marketing, search engines, e-mail, and internet loan aggregators.

By the end of 2020, we had significantly increased the portion of borrowers who are able to close remotely without coming into a branch.

Nearly all of our applications, regardless of whether they are completed in person, over the phone, or online, go through the same best-in-class underwriting processes, including a detailed discussion with a OneMain team member, ability to pay assessment and budgeting, income verification and centralized and automated credit decisioning.

Going forward, our philosophy is to continue to change the way we serve our customers to meet their preferences.

Credit quality is driven by our long-standing underwriting philosophy, which considers each prospective customer’s budget, and his or her willingness and capacity to repay the loan.

Our digital user experience includes video, chat, and co-browsing with customers.

These tools simplify and optimize the customer experience.

During 2021, we continued to increase the number of borrowers who closed remotely through our digital platform without coming into a branch location.

All of our applications, regardless of whether they are completed in person, over the phone, or online, go through our best-in-class underwriting processes, including an ability-to-pay assessment, monthly budgeting, income verification, and centralized automated credit decisioning.

Our goal is to continue to improve the way we serve our customers and extend responsible credit, so customers are able to repay their loans.

Credit quality is driven by our long-standing underwriting philosophy, which considers a prospective customer’s budget, to determine not only his or her willingness to pay but also the capacity to repay the personal loan.

We use credit risk scoring models at the time of the credit application to assess the applicant’s expected willingness and capacity to repay.

We develop these models using numerous factors, including past customer credit repayment experience and application data, and periodically revalidate these models based on recent portfolio performance.

Our underwriting process includes the development of a budget (net of taxes and monthly expenses) for the applicant.

Our underwriting process for our personal loans includes the development of a budget (net of taxes and monthly expenses) for the applicant.

We obtain a security interest in titled property for our secured personal loans.

Our customers are primarily considered non-prime and often require significantly higher levels of servicing than prime customers.

As a result, we tend to charge these customers higher interest rates than prime borrowers to compensate us for the related credit risks and servicing costs.

Our customers are primarily considered nonprime and therefore are a higher credit risk, and often require significantly higher levels of servicing than prime customers.

As a result, we generally charge these customers higher interest rates.

Account Servicing.

Account servicing and collections for personal loans are handled at the branch office where the personal loans were originated, or in our centralized service centers.

All servicing and collection activity is conducted and documented on proprietary systems which log and maintain, within our centralized information systems, a permanent record of all transactions and notations made with respect to the servicing and/or collection of a personal loan, and may also be used to assess a personal loan application.

The proprietary systems permit all levels of branch office management to review, on a daily basis, the individual and collective performance of all branch offices for which they are responsible.

Account servicing and collections for our finance receivables are handled at the branch location, in our centralized service centers, or through third-party servicers.

Servicing and collection activity is conducted and documented on systems that log and maintain a permanent record of all transactions and may also be used to assess a customer’s application.

The systems permit branch office management to review the individual and collective performance of branch locations for which they are responsible.

CENTRALIZED OPERATIONS

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Our centralized operational functions support the following:

• mail and telephone solicitations;

• payment processing;

• originating digital loans;

• servicing of delinquent real estate loans and certain personal loans;

• bankruptcy process for loans in Chapter 7, 11, 12 and 13 proceedings;

• litigation requests against delinquent borrowers;

• collateral protection insurance tracking;

• soliciting business through mail and telephone;

• processing payments;

• originating personal loans;

• issuing and servicing optional insurance products;

• servicing of certain delinquent personal loans;

• managing bankruptcy process for loans in Chapter 7, 11, 12 and 13 proceedings;

• managing litigation requests against delinquent borrowers;

• tracking collateral protection insurance;

• repossessing and re-marketing of titled collateral;

• sales and retention of customers;

• charge-off recovery operations.

• supervising sales and retention of customers;

• managing charge-off recovery operations.

We currently have servicing facilities in Mendota Heights, Minnesota;

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We evaluate internal systems, processes, and controls to mitigate operational risk and control and monitor our businesses through a variety of methods including the following:

• Our operational policies and procedures standardize various aspects of lending and collections.

• our operational policies and procedures that standardize various aspects of lending and collections;

• our branch finance receivable systems control amounts, rates, terms, and fees of our customers’ accounts;

create loan documents specific to the state in which the branch office operates or to the customer’s location if the loan is made electronically through our centralized operations;

create loan documents specific to the state in which the branch location operates or to the customer’s location if the loan is made electronically through our centralized operations;

and control cash receipts and disbursements;

• our accounting personnel reconcile bank accounts, investigate discrepancies, and resolve differences;

• Our credit risk management system reports allow us to track individual branch office performance and to monitor lending and collection activities.

• our credit risk management system reports allow us to track individual branch location performance and to monitor lending and collection activities;

• our privacy and information security incident response plan establishes a privacy and information security response team that responds to information security incidents by identifying, evaluating, responding to, investigating, and resolving information security incidents impacting our information systems;

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• our branch operations management structure, Regional Quality Coordinators, and Compliance Field Examination team are designed to oversee a large, decentralized organization with succeeding levels of supervision staffed with experienced personnel;

• Our branch operations compensation plan is based on credit quality and compliance, and is regularly reviewed for consistency with overall corporate goals and customer service.

• Our compliance department assesses our compliance with federal and state laws and regulations, as well as our compliance with our internal policies and procedures;

oversees training to ensure team members have a sufficient level of understanding of the laws and regulations that impact their job responsibilities;

• our branch and central operations compensation plans are based on credit quality and compliance and are regularly reviewed for consistency with overall corporate goals and customer service;

• our compliance department assesses our compliance with federal and state laws and regulations and our internal policies and procedures, oversees training to ensure team members have a sufficient level of understanding of such laws, regulations, policies, and procedures that impact their job responsibilities;

and manages our state regulatory examination process;

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• our internal audit department audits our business for adherence to operational policy and procedure and compliance with federal and state laws and regulations.

PRIVACY, DATA PROTECTION, INFORMATION AND CYBER SECURITY

Regulatory and legislative activity in the areas of privacy, data protection, and information and cyber security continues to increase worldwide.

We have established policies and practices that provide a framework for compliance with applicable privacy, data protection, and information and cyber security laws and work to meet evolving customer privacy expectations.

PRIVACY, DATA PROTECTION, AND CYBERSECURITY

Regulatory and legislative activity in the areas of privacy, data protection, and cybersecurity continues to increase worldwide.

We have established policies and practices that provide a framework for compliance with applicable privacy, data protection, and cybersecurity laws and work to meet evolving customer privacy expectations.

Our regulators are increasingly focused on ensuring that these policies and practices are adequate, including providing consumers with choices, if required, about how we use and share their information and ensuring that we appropriately safeguard their personal information and account access.

Our consumer loan business is subject to the privacy, disclosure, and safeguarding provisions of the Gramm-Leach-Bliley Act ("GLBA") and Regulation P, which implements the statute.

Among other things, the GLBA imposes certain limitations on our ability to share consumers’ nonpublic personal information with nonaffiliated third parties and requires us to develop, implement and maintain a written comprehensive information security program containing safeguards that are appropriate to the size and complexity of our business, the nature and scope of our activities, and the sensitivity of customer information that we process.

Various states also have adopted laws, rules, and regulations pertaining to privacy and/or information and cyber security that may be more stringent and/or expansive than federal requirements.

Our consumer businesses are subject to the privacy, disclosure, and safeguarding provisions of the Gramm-Leach-Bliley Act ("GLBA") and Regulation P, which implements the statute.

Among other things, the GLBA imposes certain limitations on our ability to share consumers’ nonpublic personal information with nonaffiliated third parties and, pursuant to the Federal Trade Commission’s Safeguards Rule, requires us to develop, implement, and maintain a written comprehensive cybersecurity program containing safeguards that are appropriate to the size and complexity of our business, the nature and scope of our activities, and the sensitivity of customer information that we process.

In December 2021, the Federal Trade Commission published amendments to its Safeguards Rule that prescribe more specific administrative and technical requirements for a financial institution’s information security program.

Various states also have adopted laws, rules, and regulations pertaining to privacy and/or cybersecurity that may be as, or more stringent and expansive than federal requirements.

These state laws include the California Consumer Privacy Act (as amended by the California Privacy Rights Act of 2020) and the New York Cybersecurity Regulation.

Certain of these requirements may apply to the personal information of our employees and contractors as well as to our customers.

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states and territories have also enacted data security breach notification requirements that are applicable to us.

For example, the California Consumer Privacy Act and the New York Cybersecurity Regulation impose more stringent requirements with respect to privacy and data security, respectively, than federal law.

Various federal laws and regulations govern loan origination, servicing and collections, including:

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The Dodd-Frank Act and the regulations promulgated thereunder have affected and are likely in the future to affect our operations in terms of increased oversight of financial services products by the CFPB and the imposition of restrictions on the terms of certain loans.

Among regulations the CFPB has promulgated are mortgage servicing regulations that became effective January 10, 2014, and are applicable to the remaining real estate loan portfolio serviced by or for OneMain.

Amendments to some sections of these mortgage servicing regulations became effective on October 19, 2017 and some became effective on April 19, 2018.

Among regulations the CFPB has promulgated are mortgage servicing regulations that are applicable to the remaining real estate loan portfolio serviced by or for OneMain.

The CFPB has significant authority to implement and enforce federal consumer finance laws, including the protections established in the Dodd-Frank Act, as well as the authority to identify and prohibit unfair, deceptive, and abusive acts and practices.

In addition, under the Dodd-Frank Act, securitizations of loan portfolios are subject to certain restrictions and additional requirements, including requirements that the originator retain a portion of the credit risk of the securities sold and the reporting of buyback requests from investors.

We also utilize third-party debt collectors and will continue to be responsible for oversight of their procedures and controls.

We also utilize third-party debt collectors and will continue to be responsible for oversight of their procedures and controls, as they pertain to our collection activities.

The CFPB has enforcement authority with respect to various federal consumer protection laws for some providers of consumer financial products and services, such as any nonbank that it has reasonable cause to determine has engaged or is engaging in conduct that poses risks to consumers with regard to consumer financial products or services.

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On June 30, 2015, the CFPB published its final rule for designating “larger participants” in the auto financing market.

With the adoption of this regulation, we are considered a larger participant in the auto financing market and are subject to supervision and examination by the CFPB for our direct auto loan business, including loans that are secured by autos and refinances of loans secured by autos that were for the purchase of autos.

With the adoption of this regulation, we are considered a larger participant in the auto financing market and are subject to supervision and examination by the CFPB of our auto loan business, consisting of loans for the purchase of autos, and refinances of such loans.

In addition, in its Spring 2018 rulemaking agenda, the CFPB stated that it had decided to classify as “inactive” certain rulemakings previously identified in the expectation that the final decisions on proceeding will be made by the next permanent director.

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• reserve requirements for unearned premiums, losses, and other purposes.

We operate primarily in the consumer installment lending industry.

We focus on servicing the non-prime customer through our national branch network, online, and over the phone.

We have a number of local, regional, national, and internet competitors in the consumer installment lending industry that seek to serve the same population of non-prime customers.

We operate primarily in the consumer lending industry.

We focus on serving the nonprime customer through our national branch network, online, and over the phone.

We have a number of local, regional, national, and digital competitors in the consumer installment lending industry that seek to serve the same consumers that we serve.

These competitors are various types of financial institutions that operate within our geographic network and over the internet, including community banks and credit unions, that offer similar products and services.

We believe that competition between consumer installment lenders occurs primarily on the basis of price, service quality, speed of service, flexibility of loan terms offered, and operational capability.

We believe that we possess several competitive strengths that position us to capitalize on the significant growth opportunity, and to compete effectively with other lenders in our industry.

We are one of the nation’s largest non-prime consumer finance companies with $10.7 billion in originations and are uniquely positioned to serve working Americans.

We utilize a hybrid operating model, including a digital lending footprint and approximately 1,500 branches rooted in local communities.

Almost 90% of Americans live within 25 miles of one of our branches.

We use best-in-class data and analytics, artificial intelligence, and machine learning to achieve strong loss performance.

Our national branch network enables us to perform multiple functions and serves as a proven distribution channel for our personal loan and optional insurance products.

We can provide same-day fulfillment to approved customers.

Our network gives us a distinct competitive advantage over many industry participants who do not have, and cannot replicate without significant investment, a similar network.

Our digital platform and our centralized operations enhance our nationwide network, which gives us the ability to originate loans and serve customers online and over the phone.

We believe that competition between consumer installment lenders occurs primarily on the basis of customer experience, price, speed of service, flexibility of loan terms offered, and operational capability.

Our credit cards compete with many local, regional, and national issuers in the highly competitive credit card industry that seek to serve the same consumers that we serve.

We believe that competition between credit card issuers occurs primarily on the basis of customer experience, price, credit limit, rewards programs, and service quality.

We believe that we possess several competitive strengths that allow us to compete effectively with other lenders in our industry.

We utilize an omnichannel operating model, including a digital lending footprint and a branch network of approximately 1,400 locations rooted in local communities.

Almost 90% of Americans live within 25 miles of one of our branch locations.

Our national branch network serves as a proven distribution channel.

We also have proven analytics that allow us to have strong loss performance through many cycles.

We believe our deep understanding of local markets and customers, together with our proprietary underwriting process, sophisticated data analytics, and decisioning tools allow us to price, manage, and monitor risk effectively through changing economic conditions.

In addition, our high-touch relationship-based servicing model is a major contributor to our superior loan performance and distinguishes us from our competitors.

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Seasonality” included in this report for discussion of our seasonal trends.

HUMAN CAPITAL

OneMain is dedicated to providing lending solutions to help hardworking Americans improve their financial well-being by offering products that are designed to be the starting point to their financial stability and growth.

As of December 31, 2021, we had over 8,800 employees.

We strive to recruit and retain an outstanding, diverse team that believes in our mission, lives our values, and goes the extra mile for our customers.

We believe a diverse talent pool and inclusive work environment makes us stronger, helps us fulfill our Company’s mission, meaningfully connects us with the customers and communities we serve, and drives success.

We offer a total rewards package which includes competitive compensation, incentives, and comprehensive benefits.

We also invest in our team members by providing extensive training and development programs to further their career and help them achieve their goals.

Our Diversity Council promotes a diverse and inclusive work environment where people are hired and advanced on their merits and where team members treat one another with respect.

We administer an annual comprehensive survey to identify areas where we can improve.

We believe engaged team members are more productive, innovative, and collaborative, which, in turn, help deliver a consistently excellent customer experience.

Our commitment to help our community starts with our own team members.

We believe in putting people first with our focus on recruiting, developing, and supporting our team members that reflect and celebrate the communities in which we operate.

In addition, we believe a diverse talent pool and inclusive work environment makes us stronger, helps us fulfill our Company’s mission, and meaningfully connects us with the customers and communities we serve.

Finally, we believe that integrity, transparency, and respect are at the heart of our success, and that these ethical values must inform every interaction we have with customers and with each other.

Diversity and Inclusion

At OneMain, diversity and inclusion lead the way for recruitment and retention.

We strive to recruit, train, and retain outstanding, diverse team members that believe in our mission, live our values, and go the extra mile for our customers.

Our inclusive culture allows team members at all levels of the organization to further their careers and achieve both their personal and professional goals.

Our Diversity Council is sponsored by our Chief Executive Officer and our Chief Human Resources Officer.

Council members represent a cross section of leadership in various roles and geographies who provide thought leadership and champion internal and external diversity initiatives in support of the organization.

Our diversity strategy, which we treat as an important business priority, has three pillars:

(i) hiring and retaining diverse talent, (ii) talent pipeline and progression, and (iii) creating a culture of inclusion.

We partner with organizations, including Veteran Job Mission and Direct Employers Association, to help recruit a diverse workforce.

All OneMain leaders and team members receive unconscious-bias training aimed at creating a positive, inclusive work environment.

We require diverse candidates (women or minorities) to be considered for all leadership roles.

This commitment to diversity begins with our OMH Board of Directors, whose membership includes 38% ethnic or racial minorities and 25% women.

All managers are accountable for attracting and retaining high-quality, diverse talent, and creating a respectful, inclusive work environment as part of their goals and our leadership attributes.

In addition, each year team members have the opportunity to provide candid feedback in an Employee Engagement Survey on how engaged they are and how enabled they feel in their roles at OneMain.

As of December 31, 2021, 84% of team members participated in the annual Employee Engagement Survey.

Talent Retention and Development

We believe that motivated and engaged team members are more productive, innovative, and collaborative, which in turn helps consistently deliver an excellent customer experience.

OneMain equips each team member at all levels of our organization with the tools and personal and professional support to further their careers.

We empower our employees to learn new skills, meet personalized development goals, and grow their careers.

OneMain conducts regular employee trainings, including Continuing Professional Education and leadership development at each level.

We invest in our employees and believe training and professional development is critical to maintaining our talent competitiveness and providing best-in-class service for our customers.

Compensation and Benefits

We offer a total rewards package, which includes competitive compensation, incentives, and comprehensive benefits that will attract, retain, and motivate talent within our organization.

Our compensation and benefits package includes competitive pay, healthcare, retirement benefits, as well as paid time off and holidays, parental leave, disability benefits, military leave, and paid development and volunteer time off, along with other benefits and employee resources.

Team members are guided through their performance management with regular goal setting and coaching.

We also offer performance pay to help enhance their career development.

CORPORATE SOCIAL RESPONSIBILITY

Our approach to corporate social responsibility (“CSR”) is a natural extension of our mission to continue to support and improve the financial well-being of our customers, communities, and team members.

In early 2020 when COVID-19 resulted in widespread health and financial hurdles across the United States, OneMain committed to continue to help and support our communities more than ever.

OneMain implemented operational adjustments in response to the COVID-19 pandemic to help protect the health and financial well-being of our customers and team members.

We focused on our customers by offering to support them through our borrower assistance programs.

We also contributed to support financial literacy, community and economic development, pandemic relief, and racial and social justice initiatives.

In June 2021, OMFC issued its inaugural Social Bond, with the net proceeds committed to serving credit-disadvantaged communities around the country.

Furthermore, at least 75% of the loans funded by the Social Bond will be allocated to women or minority borrowers as outlined in OneMain’s Social Bond Framework.

The Social Bond reinforces our commitment to financial inclusion and providing underrepresented communities with access to safe, affordable credit.

It also provides a concrete and measurable funding vehicle to advance the Company’s social responsibility program.

Additional information regarding our Social Bond and Social Bond Framework is available on our Investor Relations website.

In December 2021, OneMain entered a $4 million service contract with EVERFI, a global social-impact technology provider, to develop and distribute free, digital financial education to 1,500 high schools nationwide over four academic school years.

The curriculum is designed to drive meaningful social impact in communities and on financial wellness by teaching high school students about credit as they embark on their personal financial lives.

OneMain and EVERFI will award up to $300,000 in scholarships over four years as part of the contract.

As part of our commitment to social responsibility, we are focused on sustainable growth and our carbon footprint.

For additional information regarding our commitments to support our customers, communities, team members, and our corporate environment, please refer to our 2020 ESG report, which is available on our Investor Relations website.

AVAILABLE INFORMATION

OMH and OMFC file annual, quarterly, current reports, proxy statements (only OMH), and other information with the SEC.

OMH and OMFC file annual, quarterly, current reports, and other information with the SEC.

OMH also files proxy statements.

The SEC’s website, www.sec.gov , contains these reports and other information that registrants (including OMH and OMFC) file electronically with the SEC.

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We intend to disclose any material amendments to or waivers of OMH Code of Ethics and Financial Officers’ Code of Ethics requiring disclosure under applicable SEC or NYSE rules on our website within four business days of the date of any such amendment or waiver in lieu of filing a Form 8-K pursuant to Item 5.05 thereof.

The information on our website is not incorporated by reference into this report.

The website addresses listed above are provided for the information of the reader and are not intended to be active links.

The information on, or that is accessible through, our website is not incorporated by reference into this report.

The website addresses listed in this Item are provided for the information of the reader and are not intended to be active links.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business