The megalender and servicer Rocket reported annual origination volume in 2023 of $78.7 billion, a 40% decline from 2022.

As the book of business written during the 2020 to 2022 period enters peak delinquency years, default notices are expected to rise, fourth quarter earnings comments revealed.

The company was able release credit reserves because of actual and forecasted prices that boosted net income, CEO Priscilla Almodovar said.

The government-sponsored enterprise financed 955,000 mortgages last year, down from the 1.8 million loans it backed in 2022.

Other servicing gains helped Mr. Cooper profit despite negative mark-to-market valuations and cyberattack costs that led to lower consecutive-quarter results.

The Financial Stability Oversight Council is concerned over liquidity of these companies, especially if a warehouse lender was to pull its lines, leading to a failure.

The added revenue from servicing plus the data and analytics segment helped to improve the quarter-to-quarter results at the mortgage technology behemoth.

Markdowns on its MSR portfolios drove the company into the red, even as originations and servicing operations both saw profits.

A day after the regional bank's stock tumbled on tough fourth-quarter results and some austerity moves, observers debated whether management just needs time to build enough capital to catch up with growth or if it is still too overexposed in multifamily lending.

Chairman and CEO of Pennymac, David Spector, said the one-time cost will allow the company to retain ownership of a proprietary system that could build value for investors.