Pretax income in the servicing segment outpaced its loan production unit in the fourth quarter, as the company launches new branding initiatives.

But the company was able to increase the share of its top line that came from recurring income streams while minimizing the impact of more volatile transactional-based ones.

While bullish on the future, CEO Anthony Hsieh noted that the company is “doing the necessary work to ensure our operations appropriately reflect our expectations for the changing market."

Multifamily and specialty finance loans, which were highlights during the fourth quarter, should increase further in 2022, company executives said.

Despite that year-over-year decline, the company beat analysts' expectations with fourth-quarter net income of $5.8 billion. Stronger commercial lending and lower expenses cushioned the blow in consumer credit.

The company's fourth-quarter trading revenue declined notably more than analysts had expected, while its business and consumer lending each dropped 1% year over year.

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.

While the company produced $88 billion during the period, it had a major margin squeeze in its TPO Pro channel.

The company is repositioning its secondary market sales of loans and servicing and implementing cost-cutting measures as the market normalizes.

Applications related to Zillow Offers made up 70% of the mortgage lender's purchase business in the third quarter.

After closing its merger with Caliber, the company also hopes to pare down expenses by at least 10%.