The mortgage insurance business had adjusted operating income of $126 million in the first quarter, down from $148 million one year ago.

Hedge accounting will align Fannie’s reporting with competitor Freddie Mac, and will address a mismatch between the recorded value of financial instruments used to offset interest-rate volatility on mortgages and the loans themselves.

The West Palm Beach, Fla.-based lender sees an opportunity for even more growth after its deal to acquire a servicing portfolio from Texas Capital Bank.

The company says its first quarter net income nearly doubled from its showing in Q4 2020, due in part to cost-cutting and servicing income. It also revealed more information about unauthorized payment drafts by its vendor.

Only $89 billion of the $362 billion in new single-family volume came from purchase mortgages.

Despite falling from quarter to quarter, Flagstar’s mortgage revenues remained strong, while its servicing portfolio grew.

Although the company’s revenue and incomes spiked from year-ago levels, most benchmarks showed a decline from the fourth quarter.

First quarter volume was up 3% among eight depositories that reported so far, compared with models that predicted industry-wide drops as large as 13%.

The company expects loan growth in the “mid-teens” this year, despite concerns that a housing supply crunch could stymie new mortgage originations. “As soon as COVID fades into the background we'll pick up volume,” CEO and Chairman Jim Herbert said.

The REIT is planning its own stock sale to pay for the all-cash purchase from Lone Star Funds.

However, companies were largely unable to use that cash infusion to make investments that lower their costs, since they had to pay out more in compensation.

With independent title companies scoring the largest market share gain last year, the sector saw a 22% increase in premiums overall, the American Land Title Association said.

Banks can mitigate damage from slowing origination activity by putting excess cash to work, Keefe, Bruyette & Woods said.

The forward and reverse mortgage lender completed its merger with blank check company Replay Acquisition Corp. on April 1.

The San Diego-based company produced $10.6 billion in the fourth quarter, and has done $6.1 billion in the first two months of 2021.

The company posted an $88 million loss for 2020 after shutting down for nearly the entire second quarter.

After a booming 2020, more mortgage lenders than ever before expect diminishing margins in the coming months as climbing interest rates set up heightened competition.

Mortgage brokers are telling the company that they "are looking for another large source," according to President and CEO Willie Newman.

But profitability may have peaked. Rocket reported a 4.41% profit margin on newly originated loans last quarter but told investors on Thursday to expect margins on new loans this quarter to be around 3.6% to 3.9%.

As its mortgage origination volume delivered another quarter of strong earnings, Mr. Cooper’s banking on its "enormous backlog" of REO orders to generate further profitability once the foreclosure moratorium is lifted.