But company officials warned slimmer margins and a slowing market would lead to staff reductions.

The servicing segment's pretax income was almost 80% higher than the fourth quarter, offsetting a more than 90% decline for the production business.

Home sales usually pick up in the spring, but Zillow's outlook indicates that higher mortgage rates and low inventory of for-sale homes will finally slow activity.

The market is discounting the acquisition target’s stock price, largely over antitrust considerations, but execs dismissed the concern, and analysts said ways around it exist.

The move supports strong gains coming in from this side of the business, which helped the company return to profitability in the third quarter.

While first-quarter profits were up considerably, CEO Michael Nierenberg said the company will offer more products to counter market conditions that are “only going to get worse.”

The transaction is expected to keep revenues flat at the company at a time when mortgage origination volume is shrinking.

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.

Despite the current upheaval in pricing on the secondary market, the company sees its future in non-qualified mortgage production.

Minus the adjustment made to account for stock price declines and goodwill, the company’s countercyclical mix of loan products was profitable, but secondary-market volatility presents a challenge ahead.

The company had its best fourth quarter ever for loan production, with purchases making up nearly 45% of that.