Stocks

The company reached a new record high for closed loan volume, and reported a cyclical drop in gain-on-sale margins reflecting changes in its product and channel mix.

With the 10-year Treasury yield getting a boost due to Pfizer’s COVID-19 vaccine news this week, KBW predicts insurers and title underwriters will fare best as recovery continues.

The company, which earned $535 million in net income in 3Q20, has been prioritizing purchase volume and managing costs to account for a possible decline in originations next year.

For most of the underwriters it was a strong quarter, but concerns remain over government-sponsored enterprise reform and potential claims after forbearances end.

The company is finding it challenging to ramp originations back up after spending most of the second quarter on the sidelines.

Compared with the second quarter, the title insurer had 154,000 more orders opened and earned $89 per residential file.

While Rocket reaches near $1 per share, Fannie Mae and Freddie Mac are seeing declines as their planned exit of conservatorship remains tied to the presidential race.

Two investors pushing CoreLogic Inc. to explore a sale won partial support from a prominent shareholder advisory firm, which urged shareholders to support three of the dissident group’s nominees for the board.

The origination boom generated another profit for the company in the third quarter, when also it obtained a novel source of liquidity to support its servicing operations.

The upcoming shift may help to prepare the government-sponsored enterprise for a conservatorship exit by reducing interest-rate volatility in Fannie’s earnings.