Servicing

Foreclosure starts also increased by over 19% between October and November but remain below pre-pandemic levels.

Loans with payments late by a year or more were the biggest sub-category within the distressed portfolios a year ago, but now mortgages that've been late for 30-59 days are.

The uptick in the 60-day-plus metric could reverse the bulk of the decline that occurred between 2019 and 2021.

The Lansing, Michigan-based firm was awarded the contract this spring and takes over from Novad Management Consulting, which had previously serviced government-held HECMs since 2014.

The products are currently limited to a single distribution channel, but the company hasn't ruled out offering them through third-party originators in the future.

Home prices dropped again on a monthly basis in October, exacerbating the loss in home equity among recent buyers, but the size of the falloff was the smallest since June.

The government mortgage-bond insurer's requirements that restrict investor involvement are likely the greatest challenge to finding more purchasers of MSRs, experts said at a servicing conference Monday.

The company was profitable on a net basis but took a comprehensive loss linked to market volatility's effect on mortgage bonds.

The $1.3 trillion decline was the largest quarterly drop in dollar volume and the biggest falloff on a percentage basis since 2009, according to Black Knight.

The company's volume fell behind its wholesale-focused chief competitor's in the third quarter but management foresees potential weakness in the broker channel.