Originations

Broader economic factors, including growing household debt, are also likely to keep the housing market stagnant, Freddie Mac said.

Its strong balance sheet opens up opportunities for the mortgage lender to bring more companies under its helm, executives during the earnings call said.

The firm says the product can save companies in excess of 30% of their existing cost structure.

Earnings benefited from low delinquencies and slow prepayment speeds, but high rates will limit growth opportunities.

The company posted net income of under $301 million in the third quarter, including a $93 million positive mortgage servicing mark.

A significant fallback in rates brought some borrowers back to the table but cooled interest in adjustable-rate loans, which had surged throughout October, the Mortgage Bankers Association said.

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

But the Fannie Mae Home Purchase Sentiment Index still rose in October versus both September and the prior year.

The retention rate among servicers is at a 17-year low the latest Intercontinental Exchange Mortgage Monitor report found.

Direct-to-consumer lenders and iBuyers could be beneficiaries of any rule changes, analysts say.