Higher sales commissions helped to drive production costs to their second-highest level since the Mortgage Bankers Association started its survey in 2008.

The company was able to generate a relatively higher margin than the previous quarter, in contrast to broader industry trends, bringing its bottom line back into the black.

The company’s servicing operations also reported a quarterly profit, with its portfolio increasing by 20% annually.

The company increased and diversified its income streams beyond the mortgage sector but expenses associated with stock-based compensation and a recent acquisition outweighed these gains.

Amid its first post-IPO securitization of loans made outside a regulatory definition for standard products, the company has seen purchases accelerate, but it underperformed by some analysts’ estimates.

The wholesale lender's net income of nearly $330 million factored in a $170.5 million hit from a reduction in its mortgage servicing rights fair value.

The company’s gains, which far exceeded analysts’ expectations, were partially offset by thinner production margins.

The company’s six acquisitions since last March will contribute to increased revenue in both of its software and data and analytics segments.

All six companies, however, remained highly profitable, as the delinquency and forbearance outlook is favorable for the possibility of rising claims payments.

A greater share of the company's future earnings are likely to come from servicing as rates rise, Chief Operating Officer Andy Chang said.