Reverse mortgage lender Finance of America posted a quarterly profit to end 2023, as it completed post-merger integrations and faced warnings of delisting from the New York Stock Exchange.

The company originated more loans to buy homes than Detroit-area rival No. 2 Rocket did in total during the fourth quarter.

A rate drop was a common concern for some servicers during the quarter, and Ocwen recently took a step aimed at better addressing this risk in the future.

The megalender and servicer Rocket reported annual origination volume in 2023 of $78.7 billion, a 40% decline from 2022.

As the book of business written during the 2020 to 2022 period enters peak delinquency years, default notices are expected to rise, fourth quarter earnings comments revealed.

The company was able release credit reserves because of actual and forecasted prices that boosted net income, CEO Priscilla Almodovar said.

The government-sponsored enterprise financed 955,000 mortgages last year, down from the 1.8 million loans it backed in 2022.

Other servicing gains helped Mr. Cooper profit despite negative mark-to-market valuations and cyberattack costs that led to lower consecutive-quarter results.

The Financial Stability Oversight Council is concerned over liquidity of these companies, especially if a warehouse lender was to pull its lines, leading to a failure.

The added revenue from servicing plus the data and analytics segment helped to improve the quarter-to-quarter results at the mortgage technology behemoth.