The company's recent expansion into commercial servicing is part of a broader effort to build a diversified business model, according to President and CEO Mike Dubeck.

The regulator, which is seeking to halt the combination, said arguments involving constitutionality of its proceedings are "impertinent" and "immaterial."

Following sales to Mr. Cooper and The Loan Store, the wholesale giant reported originations of $891.2 million between January and March.

The Dallas-based lender will assume close to $1.1 billion of conventional mortgage servicing rights, roughly $600 million in tangible equity and $500 million in outstanding Home Point 5% senior notes.

Merger arbitrage traders were expecting hiccups in Toronto-Dominion Bank's proposed takeover of First Horizon, but they were unprepared for its cancellation.

The companies cited an inability to secure regulatory approvals after postponing multiple times a closing that had been originally expected last fall.

The hedge fund added a new small long position in the mortgage software company, according to a copy of its quarterly letter seen by Bloomberg.

The parties responded to the Federal Trade Commission's court filing that sought an injunction to halt their merger pending an internal adjudication.

Other positions are being eliminated nationwide, with just 50 to 60 people remaining to manage the company's mortgage servicing rights.

Forty mortgage professionals located in California have transitioned to the San Diego-based lender, including processors, transaction coordinators and loan officers.