Good and of Thanks, us. sharing morning for joining everyone. We're the our this our And looking year. to plans with progress for you balance Dico. forward the morning, thanks
share has in which and approach robust and our are valuation guidance levels XXXX, taking appreciation book X improved Let's managing prudent highlights a to risk value asymmetric and get delivered million and opportunistically hedge quarter, what first $XX with harvest believe our We first-quarter dollars started strong consistent We navigate XX% annualized with balanced the quarter. diversified to our review business sold expectations. and the select the in a cycle. our portfolio. mortgage mitigate in first to well we Consistent our the have build of per us MSRs at few Slide investing previous from are actions quarter, positioned cautious to MSR and for ROE income we believe liquidity value year-end. from appreciation current year-end our we a to results net And with position, a our
our declining. is is value. in appreciating is improving interest performing servicing MSRs operationally, are rising Our servicing platform with well Runoff financial rates. performance
their them we thereafter. appreciate we year-end XXXX announced to We into annual growing. continue cost confidence to and our us, improve at renewed their agreement was options we and looking business, forward their is and with to for serve our thank We portfolio sub NRC structure Yesterday, borrowers. NRC continuing our with are servicing extension
was year-over-year subservicing expectations. XX% Origination were year-over-year driven faced additions. $XX Forward the up and volume a XX% down in below environment servicing originations first quarter, billion is while of challenging total additions by about margins
service and expenses operating in taking necessary product our profitability. mix to forward and restore originations to our are reduce shift actions mix We our
QX reverse very market are holding more than support relative both Our and doubled Origination a pipeline building is to is originations on growing. and expectations we're growth. opportunity ahead volume flat year-over-year. Margins is [Indiscernible] business sub-servicing performing to strong and is future of performing well subservicing. Reverse
environment they to quarter market Slide forward. to industry main X turn positioning. of in faster just we our higher see current suggested increase. short have profitability going forecast Let's X to In months few risen discuss rates the at ago, the our and first environment the Interest that drivers a and continue
servicing we with our even and First, for our interest higher future driver in servicing of expect an expectation will an important the strength rates, business earnings. core be
the working, profitability is income volume, model and first the MSR servicing year originations margins and more decline payout value in lower last expense productivity, forward profitability, appreciation, of contract. offset volume is the pre up growth. portfolio -tax business MSR quarter and due improvement and in balanced Our first The and servicing than gains value quarter significantly versus as to
of to but driver element market in critical be cycle, and earnings portfolio. Forward servicing will grow replenish originations this a less important our a
driver growing recognition performance believe scalable is respective proven We global our their servicing industry-leading has been Mae, that sub-servicing. recognized made Freddie Second with top honors great in in platform. forward by here business HUD success sub-servicing progress our technology-enabled, Mac, performance operating and supported by programs. We our Fannie our reflects
day forward meaningful months. and last be $XX pipeline potential We've billion borrowers UPB And in billion operations the to with billion scheduled additions We outperforming $XXX subservicing MBA Moody's and of months, and a benchmarks. in we subservicing added opportunities. rewarded opportunity additions. next our in special to subservicing has $XX earn in have industry roughly subservicing this our in leader XX every hard the six additions worked supporting clients potential been continue investors to servicing, in We and trust
we NRC capacity. the potentially renewal, to to with investment Matt our addition at advanced In are discussions double
Third driver is reverse business. our
the only stable. continues end-to-end volume the growing, to opportunity origination full-service, profitability market Industry We and mortgage reverse originations in large-scale, is and our are provider industry. is share improve
strength our industry an volume billion. excited really position, potential expand we're power, business overall otherwise about earnings believe not roughly our is business subservicing have of reverse continue our scale, opportunity of we and of gaining the or business originations, profitability look capabilities With and for the our Overall, $XX financial recent do to improving, at create reverse scale pipeline and reverse share can for value that business. is shareholders. and price opportunities shrinking, we or our M&A potential reflective Our
$XX Let's turn In Quarter. of servicing hedges X some net in First increased highlights. to MSR the Slide million for servicing, value by
increase translates MSR value points, of XX sensitivity parallel So on earnings share value per has $X.XX, increased basis $XX by by DBOX an gains sale. million. would gains far roughly interest in MSR hedges a April, immediate for $XX through we increase on estimate of loans held our million. $X Based despite income driven fair excluding roughly roughly into year-over-year, which MSR industry net repurchase losses EBO profile, about million lower our rates Servicing has increased
enterprise strategy in owned Our our sales has by All servicing up diversified of team year-over-year, our meaningful servicing, executed portfolio portfolio growth growth XX%. subservicing. resulted segments over
balance within And UPB small growing. $XXX in billion subservicing the are been servicing with options commercial agreement and had of which We're The current Z and end at thereafter. forward targeting billion by July. to $XX QX in annual subservicing XXXX, expire set covers approximately UPB year-end extended of our extension extension until our reverse, Forward, agreements the year-end. have been the of roughly
agreed revenues some we simplify As process share end the of the the and to at term. for of renewal, a ancillary of part portion each future extensions
their reduced structure NRC of reflected renewal UPB believe contract basis As portfolio servicing short-term basis points the interest in UPB or We costs XX% debt. achieved our higher slow billion our from should of X further and business increase, may we've by this thin-margin, outcome servicing and process basis platform, This cost both in related in significant XX.X in Higher and partner we right we points our the composition, we've Through a considering year. said the past, continued but digitization the of we've to and and our rates are fluid between scale, -payments investment, appreciate for to companies. over renewal. good technology, is driving servicing re-engineering, $X.X we is X our in interest has and confidence a runoff lower on points by capability reductions reductions escrow XX% the Moreover, believe last almost further cost year-end. a are balances. improvement, rates in $X.X help of process interest as higher targeting billion of expenses. combination the revenue we pre expect Through offset
quarter, at and upon First completion evidenced the our our our going managing MSR and we're by as quarter the several in experience in executing quality servicing, the did And subservicing. for Ginnie lower sale particularly claims to loss We these our of leverage second and excited unreimbursed servicing loans first we'll We forward will believe We in earnings reduce a sale are the opportunity recognize sale in on the we through value population. portfolio. we Quarter. Mae sale a about loan transactions severely are is loss believe platform for in expense aged the our We improve growth have the tremendous sale. of actively portfolio of derisks
originations. Slide review and forward likely for Let's to environment get generally tougher. believe is forward to that originations I the X to it's tough turn understood
in We response. actions are taking
volume on lock year-over-year, largely quarter XX%. down was lower a margins, total up We forward additions. a team -tax volatility related in billion origination XX% $XX origination lower sub-servicing hedge Our pre in delivered loss volume, servicing by total driven additions But origination by and and sequential effectiveness. experienced basis, driven
origination experts, basis of and more wide mid-March, than primary transactions through was saw range points. coupon between values February, a sub evaluation we XX bulk market, variation of During the sales MSR levels at
lending frame, by prudent volume this to we intentionally constrained the origination decision new During and made time copying MSR prices. correspondent
bulk hedge validated we Copy and prices MSR compression our experts as valuation mid-March, MSR Since effectiveness. margin much own we've reduction of range our a competitive MSR as well new volume values. and and drove influences, transactions. sales seen through tighter drove values origination While beyond
lock caps We the have volume have correspondent and performance pricing improved. margins hedge since lifted and
on continue focus client multichannel leveraging We our our to growing base, capability.
first up here times continues the and in is and grow. and doubled Mae to count is client products total the non-agency best pit April year-over-year, growing in have deliveries. Our year, levels. We're X.X it non-delegated exceeded Ginnie last volumes Volume first-quarter efforts quarter higher-margin and over
are first in half cash-out We levels. achieved quarter rate XXXX are is recapture We recapture direct at reductions will decline Portfolio to executed we during our March, be marches annual rate, match Our actions current to improve. the market during by contractors. adjust our staffing now to XX%. quarter. interim and of rate expected refinance offsetting estimate forward cost growth, must to significant with and reduce XXXX market. a to in capacity XX% opportunity. which business, volume origination including In we XX% improved originations Further for conditions, part second forward refi refinancings occur level structure of consumer continues the Under roughly smaller our XX%
volume reduce roughly structure the versus quarter to basis targeting the by and our are We points fourth of cost XX% quarter this year. of first by
includes For This targeting including subservicing in of total the we're $XX $XX billion originations. about and additions. billion towards about billion in full-year, forward servicing $XX MAV additions,
is Let's this market. and new turn day mortgage to example performance a group the consideration rates. reverse Slide loan people of has home $XXX,XXX business. articles retirement helping to tool. is XX,XXX of impact Origination about each of and The fuel discuss diversified with positive higher and in as XX offset appreciation. mortgage We're home reverse here now been to our continued business very research Demographics news by and tops another amount are is roughly to in combination There quite equity claim also of $XX the supporting amount age favorable reverse price growing X held interest Increases successful and the trillion. excited balanced to our maximum strong in turning model. increase production the in opportunity
our all We share, year-over-year. of up same growth is Encore's continue points more retail, the channel. doubled growing fastest-growing QX We're X.X over in about direct-to-consumer, channels; lending last is is market quarter retail seeing than which direct-to-consumer wholesale, year. versus percentage volume Origination
share a the down margins over in As year. past drifted June moment, will have revenue
by However, margins been past the stable channel several have for quarters.
originations schedule, positioned We The market our loan we're reverse going boardings is the only the of are of can as financial ahead are across participant large result. mortgage servicing. of capabilities well, RMS end-to-end and slightly as that integration and ahead expectations offer platform
has platform opportunity $XX subservicing grown pipeline been and our Our at billion, has in strong. quite interest
provides, market helps the by subservicing mortgage and to our diversification and business a and expect QX the market. mortgage platform initial objectives. forward we're uniquely positioned mitigate this we thereafter, We after We the be achieve reverse scale on complete believe profitable our in integration reliance origination
in Now to more I'll financial detail. through our performance turn to go June it over
