Servicing

Others in the mortgage industry have been known to take a page from the company’s innovative digital strategies, but using Truebill’s tech as a countercyclical strategy for recurring revenue and lead generation may be too pricey for most lenders to imitate.

Inflation and higher interest rates are hurting distressed borrowers, but low unemployment, remaining forbearance and loss mitigation options are still blunting their impacts, recent loan-performance numbers suggest.

Delinquencies are likely to rise if both interest rates and inflation continue their upward movements, a DBRS Morningstar report said.

These results are likely to be mirrored by the nonbank lenders when they report earnings, said Keefe, Bruyette & Woods.

New starts in the first half of the year came in 19% higher than early 2020, but primarily affected long-delinquent properties protected by moratoriums.

The company will also shed real estate, reduce marketing expenses and restructure its operations as part of a three-year plan.

The government-sponsored enterprises divested themselves of the largest share of these loans since they first began selling them in 2014, a Federal Housing Finance Agency report found.

Intercontinental Exchange's move to acquire Black Knight and Lower's purchase of Hamilton Home Loans are just some of the latest developments to monitor in the space.

After a turbulent period of layoffs, financial losses, allegations of misconduct and other public gaffes, the digital lender attempts to start anew with the hiring of Sushil Sharma as chief growth officer and others.

And as long as broader unemployment remains low and inflation stays high, monetary policymakers will likely keep raising short-term rates in ways that could challenge home lending.