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%.

The company, which was accused of cutting corners in originations by a former top executive, produced $32 billion in the third quarter and is guiding between $26 billion and $31 billion in the fourth.

The mortgage giant’s net worth of $42 billion at the end of the quarter was more than double what it was a year earlier. CEO Hugh Frater said that financial strength puts the company on better footing to support affordable housing goals outlined by the Federal Housing Finance Agency.

The combined refinance and purchase total was nearly double the average quarterly volume logged before the pandemic, the company said in its third-quarter earnings call.

The company is making progress on a focus shift to recurring revenues from transactional activities.