Secondary

The lender and servicer is still planning for another $120 million in annualized expense reductions in the next few quarters.

He will take over the role from current non-executive chair Sara Mathew, who's allowed time on the government-sponsored enterprise's board is expiring.

The company also renewed key partnerships, recorded some reverse mortgage charges it'd previously foreseen and eked out an adjusted pretax origination gain.

Rather than adding the option of using two rather than three prior to score updates, the company suggested the former functionality be added after or scrapped.

But the company was profitable for the second consecutive period under standard accounting principles in the third quarter.

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.

Like its competitor Fannie Mae, the enterprise's earnings were higher year-over-year but recorded a quarterly decline in part due to a legacy shareholder lawsuit.

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 government-sponsored enterprise's net income was balanced by climbing interest rates, which drove a large increase in fair value gains.

High interest rates and constrained inventory will take its toll on originations and securitization activity in 2024, the rating agency commented.