Servicing

A greater share of the company's future earnings are likely to come from servicing as rates rise, Chief Operating Officer Andy Chang said.

Valon Technologies Inc., a startup that operates a digital mortgage-servicing platform, raised $43.9 million in equity funding from investors including affiliates of Starwood Capital Group and Freedom Mortgage.

After closing its merger with Caliber, the company also hopes to pare down expenses by at least 10%.

Last week, the world of mortgage servicing got an unpleasant surprise. Cenlar FSB, the nation’s largest subservicer of residential mortgages, was hit with a consent order by the Office of the Comptroller of the Currency alleging “unsafe and unsound” banking practices.

Numbers fell across all investor types, but exits hit their slowest pace since August.

The move by the agency, which is an arm of the Department of Housing and Urban Development, will help further efforts to give servicers more leeway to modify mortgage terms.

Numbers decreased across all loan types, with the largest decline among GSE-backed mortgages.

Mortgage servicing rights can look more attractive to originators as they become increasingly interested in building their customer base, but some may want to sell due to thinner margins or regulatory uncertainty.

James Campbell joins a bank whose mortgage operations generated $178 million in third-quarter revenue.

The company sees an opportunity as its competitors have to sell to make up for lost income due to tighter origination margins.