Servicing

Rocket Cos. fell just $200 million short of United Wholesale Mortgage in Q1, as servicing recapture from its massive MSR portfolio fueled $44.7B in closed loan volume.

The buyer will add around 800,000 loans to its hefty servicing portfolio, while Valon said it will shift away from servicing to focus on technology.

The share of seriously underwater homeowners also grew in 45 states compared to a year ago, with the South Central region most affected, according to Attom.

A rule change requiring trial modifications before other loss-mitigation options is creating workflow and liquidity challenges, especially for smaller servicers without deep resources.

The company turned a GAAP profit of $170.4 million for the quarter, with its volume and margins relatively flat compared with the fourth quarter of 2025.

PennyMac Financial Services reported $82.3 million net income, inclusive of a $44 million net reduction related to servicing fair value and hedge losses.

CrossCountry defended its lower bid for Two Harbors, looking to refute UWM's arguments regarding the status of its financing for the all-cash offer.

The company revised the deal after consulting with Ginnie Mae and reported lower earnings due to rate volatility, refinancing and FHA delinquencies.

The top bullet point in Two Harbors' rejection notice is the Mizuho credit facility does not constitute committed financing for UWM to pay for the deal.

UWM Holdings is now bidding 70 cents more per share than CrossCountry for Two Harbors, with an all-cash option as an alternative to its all-stock proposal.