As the leading player in a specialized niche within the consolidating mortgage market, Finance of America is being watched closely.

The lender and servicer is still planning for another $120 million in annualized expense reductions in the next few quarters.

The company also renewed key partnerships, recorded some reverse mortgage charges it'd previously foreseen and eked out an adjusted pretax origination gain.

But the company was profitable for the second consecutive period under standard accounting principles in the third quarter.

While the addition of Black Knight is already paying off in terms of cross-sell success, the unit has posted operating losses in five of the last six quarters.

Like its competitor Fannie Mae, the enterprise's earnings were higher year-over-year but recorded a quarterly decline in part due to a legacy shareholder lawsuit.

The acquisition of the mortgage servicer has costs, but it'll give the company offsetting efficiencies of scale, executives said in an earnings call Tuesday.

The government-sponsored enterprise's net income was balanced by climbing interest rates, which drove a large increase in fair value gains.

The neobank is also benefiting from its product diversity.

The number of sellers it works with in the correspondent channel has grown due to pending capital requirements affecting larger depositories' interest in loans.