Fair value increases on existing business and an accounting change made for troubled debt restructurings likely explain why its results contrasted those of competitor Freddie Mac.

While the lender-servicer reported robust Q1 earnings, it is anticipating lower future revenue due to the tight originations environment.

Improved loan performance, a credit reserve release, higher g-fees and reduced portfolio runoff helped to offset declining single-family loan purchases.

But the consumer credit reporting agency’s adjusted results slightly exceeded consensus estimates from analysts.

Mike Roffler, the San Francisco bank’s incoming chief executive, says he’s not shifting strategy. During the first quarter, the company leaned on its mortgage business, where customers moved to lock in refinancings before interest rates rose.

The gain on sale from first quarter originations increased as the bank shifted more volume share to the higher-margin channel.

But it was the second-most successful year ever for IMB originations since the Mortgage Bankers Association began collecting this data in 2008.

Following steep quarterly and annual losses, executives were optimistic that new revenue estimates are achievable in a rising interest rate environment, especially as customers transition to the Blend Title platform from Title365.

Production costs reached a high as secondary-market loan sale margins continued to decline.

Net income declined by over 40% for both the quarter and year due to smaller gain-on-sale margins, but its servicing financials picked up.