Finance

The sponsors got the portfolio through multiple acquisitions from May through October.

The bulk package from an unnamed seller is associated with retail loans generally originated a little over a year ago and purchased by government-sponsored enterprises Fannie Mae and Freddie Mac.

The loan pool’s volatility score is high but its diversity of properties is a plus.

Electronic signatures and remote online notarization can now be used for mortgages that previously were signed in person, subject to certain restrictions.

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.

Nearly half of the company’s revenue comes from sources outside of the traditional home lending market, CEO Patricia Cook told analysts during the company’s earnings call.

However, it remains 30% tighter than pre-pandemic levels, according to the Mortgage Bankers Association.