Servicing

The seizure of servicing from Reverse Mortgage Funding's bankruptcy has had ripple effects ranging from a private legal challenge to broader policy changes.

Some of the lender and servicer's systems are offline following the attack on Oct. 31.

While the addition of Black Knight is already paying off in terms of cross-sell success, the unit has posted operating losses in five of the last six quarters.

The acquisition of the mortgage servicer has costs, but it'll give the company offsetting efficiencies of scale, executives said in an earnings call Tuesday.

The latest increase marks the seventh straight quarterly rise, per an Attom report.

The number of sellers it works with in the correspondent channel has grown due to pending capital requirements affecting larger depositories' interest in loans.

The company posted third-quarter profits of $194 million but gave no details about a potential split of its mortgage business.

The company took another net loss but some of its numbers improved as it slashed expenses and prospects improved for distressed loan services.

At the same time, the 15-year fixed rate loan rose above 7% for the first time in nearly 23 years, Freddie Mac reported.

News of President Chris Marshall's planned departure at year-end 2024 came amid reports of net servicing gains and the start of a capital raise for an MSR fund.