Servicing

Leaders of its parent company touted the success of subscription models and also made a case for its proposed merger with Black Knight in an earnings call

The share of borrowers who owe no more than half of the property's market value increased to 48.5% last quarter, according to Attom, a real estate data firm.

Servicing numbers propelled the REIT to the positive third-quarter result, while the company also announced it had acquired a stake in a commercial real estate investment firm.

If an unusual consumer protection gets rolled back in the state, servicers could get more of a second chance in court and borrowers will lose some protection.

The company said its mortgage subsidiary has pro forma compliance with the pending risk-based capital requirements that other entities claim are difficult to meet.

The share of home loans late by more than 30 days or in foreclosure in August inched back down to 2.8% from 3% the previous month, according to CoreLogic.

Earnings from the real estate investment trust, which primarily invests in agency securitizations, highlight some defensive strategies that proved effective in mitigating risks, but also point to current revenue challenges.

However, from a historical perspective, vacant pre-foreclosure homes remain "nearly extinct" heading into the fourth quarter of this year, according to Attom Data Solutions.

The company is positioning itself for further challenges in the mortgage cycle, and considering MSR buying opportunities while keeping in mind that it needs to be cautious about its capital allocations.

Mortgage experts generally expect the switch to open up lending and potentially improve the predictability of loan performance — but some are worried about potential costs.