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We’re looking through review why and quarter, Today, can the actions discuss forward diversified to morning. few balanced you we’ll third term a with the market our take environment this model highlights for our sharing value. our we to progress you business deliver long address believe and
Now please Slide turn to X.
while with rising environment origination’s As the in substantially, improved environment has know, you challenging. quite all the servicing rates is
business made model the well great third we’ve in Our working balance is and diversified progress quarter. and
growth, We allocating prudent versus and returned our to reduction strong profitability. focused MSR the our during quarter. delivering optimizing value and and and adjusted We’re was origination segment driving delivered to deliver to substantially shareholders. book ROE, value cost income, increased second the enterprise values loss net quarter wide reduced appreciation, pre-tax capital liquidity has
Our was growing up and versus third sub-servicing portfolio of UPB servicing quarter year. servicing last the with total both
fourth reduction million with We’re quarter cost reduction versus to enterprise cost reducing our wide the expect and second target baseline. our over exceed in $XX annualized ‘XX our quarter cost structure
capital our Regarding structure.
putting Tree new sourcing program repurchase management many asset Many the and for thanks we MSR completed business light of transactions partner. outside funding partnership capital our nearly is our as share Our us trust an partners to their two of signed complete. MAV additional upsize in thanks and MSR Oak to and support their two We MAV. continued for
base. We’ll growing ever. Expense priority forward, the all types, management well non-performing the and servicing. very servicing, expanding cost match maintain expenses special believe to environment. As opportunities we loan to higher balance, sub continuous In In commercial, our look positioned we or discipline through driving and our margin are address originations, and ahead. and important growth cost, reverse, our I priority is market small challenges is across product is forward, client reducing our capacity and adjust than servicing improvement more products
MAV partnerships Oak and to Tree other relationship are efficient We growth. funding capital MSR and support our prioritizing with
completion of our share nearing are share further our we flexibility conditions, considering equity authorization, evaluating repurchases or we’re high leverage, yield As current investments. repurchase our and maintaining float market opportunistic debt for
the adjusted pre-tax reduction key to and expect We other actions complete quarter as initiatives. deliver our profitable fourth income cost in business we
Overall, business influenced cycle. by model items As business pleased in navigating past, to in balanced confident are GAAP results and and believe performing well, in earnings the diversified ability is levels. our our our remain with I’m marketing be those this that will straight We in our execute control.
our Slide to value and plan. discuss creation to turn X environment the Let’s
is prepayment We’re lower strength creation in slower that’s improving, plan to higher servicing MSR escrow and values environment focused value the in a and environment. earnings profitability are on our model. prepayments, stable a core by of related it’s aligned more favorable is years, servicing than driven delinquencies. rising executing is The expenses, business been and
elevated and expect increased originators seeing flow are bulk and cash attractive with opportunities We continue pressure. MSR to as continued volume be returns investment we under profitability
the client servicing, delays are easing sub robust. is remained and opportunity pipeline opportunity strong, Regarding our
service may providers and raise are actions to a recession, loans. non-performing seeing partners interest asset whole special are increased growth opportunities as mortgage in source to and sector capital in of is US looking We did increased We crisis. it the recession and during rates the a MSRs, for from servicing. an loans this driving our Fed plays present who to interest competency new financial The investment believe for probability core
market is of that The to be forecast be X.X XXXX to future. optimistic. MBA industry and The for frankly XXXX and don’t Fannie foreseeable lower. originations forecasting is Moving XXXX, continue GSE the we Mae in industry trillion volume turned see and relief may volume fast and revised now and down for hard originations.
have only The near to rates points XXX continued levels a in the drive volume if today, rates refinancing we is don’t Additionally, basis mortgages believe were incentive. challenge will decline lower from bottom. in substantial Origination refinance fourth outstanding of fall term quarter. surge even a finding to activity, XX%
cost in future. the will strength right continue management originations this strategy additions is result, new As client reduction, the in foundation. and core In our to servicing be believe a environment, the foreseeable we for margin
funding this the the shareholders. has capital plan Our on elements, four driving built and core leveraging our to optimizing key prudent of reducing diversified value organization maximize model, liquidity, strength and for value business creation the structure allocating balanced cost growth strength adapted our and for diversifying sources, across environment,
Let’s balanced business model. turn to diversified our the of benefits to and Slide X discuss
environment. in originations in the quarter particularly pre-tax a up appreciation, despite income we’ve model diversified last net Servicing GAAP more balanced significantly to business for environment. originations. the Our and this to is us, and third income Year due delivered than is quarter a decline profitability in date, core value versus over $XXX offsets which MSR strength in million year
leading on strong focus growth operating portfolio. servicing our sub is driving performance industry in Our supporting
HUD, billion. servicing has partners mature ratings for global in We of to are for clients a our and efficient the the drives as boarding a top and sub last UPB We’ve post due our of months, clients. billion capacity rated capability, performance. added servicer outcomes growth Mac, pandemic in scheduled Through strong servicer and built an potential improved earned by opportunity and platform evidenced technology $XXX with in sub Freddie we’ve Fitch XX and investment Fannie operating upgraded pipeline strong and that by Mae, $XX financial servicing trust our
invested have the capabilities well us servicing We market in navigate ahead. platform core consistently in strength believe our our to we and positions servicing
industry leading with expertise domain deep and and commercial balance, small capability broad have servicing. We forward, reverse and special
service corresponding end full we special MBA in borrowers end than higher only sub the With revenue servicing, We’re be more benchmarks. to servicing potential mortgage investors half operations supporting advances our and total in costs and and provider leader elevated the is in industry limited. scale servicing and the and continue recession industry to large our and Moody’s exposure to outperforming reverse a servicing, portfolio without
We improvement the have throughout cost continuous a company. mindset
demonstrate leading in execution. believe maintaining the an any reduce our strong structure an ability is advantage while continue structure, to to industry environment. cost cost operations We having We
creating for capital our while potential basis. flexibility co-invest of about believe in expanded and and of well not base, our business us earnings to helps strength positions capacity development synthetic optionality servicing asset capital our our additional and development originations capital managed and our business. servicing MAV our the the create of and in to excited we’re recent allocation We our financial believe increase power Overall, is our Lastly, us grow the do reflective partners our process. on efficient or capital partners position, price of share MSRs sub a
Let’s our the in turn current discuss to focus Slide to growth environment. X
base expansion Our driving higher growth additions. margin strategy servicing on focused sub and products, client is
down second conditions subs with market to each X% third under we originations lower who projections market MSRs clients month of and the to In bulk get expecting we the were our roughly for boarding on took team last client revised avoid light from allowed is compared value the seem down were and margins period conditions. origination as our the quarter Industry additions MSRs originations, performing year. opportunity the both servicing sales selling. enterprise Our and costs and quarter. the transactions prior to XX% us versus element key volume about lower purchase focused volume to quarter, fourth the prospective servicing current one in to XXXX versus at of a are well approach. returns and MSR excluding acquire quarter clients in third highlighting addressing attractive Sub comparatively current our was largely enabled This
in is sub our emphasis have UPB with servicing quarter origination Similarly, believe our six servicing roughly servicing points the last The third delinquent. of Mae the We credit in now and quarter XX% of forward our advances We’re was have we focus diversification our $XX servicing quality Mae, relatively quarter we well versus owned on PLS at versus and of on are segments shift with as a currently sub products of are up Fannie billion are risk bar In at exposure sub year. looking up are margin advancing we monthly. higher growing The months. respectively, advances principle are In to and last servicing even delays of which as with GSE Consistent revenue event and recover sub portfolio servicing we have and with high, four credit capped and our over focus, year. and if in servicing, growth in of lower portfolio our Ginnie [bars] our servicing, seeing months, focus the second these the quality will and responsibility, case XX% is advances recession. evident sub sub be and interest additions our significant the moderate portfolio where the MSRs. delinquency flat scheduled percentage and when our more no GSE is owned XX% to composition. mix revenues on X of beneficial next growing third evident MSRs,
these comprised However, portfolio. only segments of XX% our combined
in strategy we and our subs recession, others a to deliberate increased portfolio expect to for support capacity Our our reduces the conditions demand. servicing to risk special of event drive should adequate diversify servicing market exposure have
expense on Now our actions. to investors. to to deliver business clients on needs demand and please continuing turn reducing align cost to industry remain part cycle, to Slide this commitment market customers, update in of We committed and the to an support X for our while management
progress our target. Our made has great team cost against reduction
fourth in million quarter annualized this We’re expense reduction $XX on versus the the baseline by year. second track exceed quarter to
reduction, significantly we’re originations and reverse the largely prudent or in the on staffing focused We’ve platforms. maintaining risk maintaining compliance most and essential levels cost activities a our direct most driving adjusted consumer across and framework. supporting management in organization but sustainable We’re focused retail and
in Our servicing cost quarter from and measured XXXX fourth down is and in XX% basis structure the originations XX% points respectively.
our to operating the capabilities. seasoned, global We mature leverage continue
operating and proprietary global for place platform XX business been activities. Our supports the years all has in last
continue drive continuing our automation, process We on process roadmap digital to technology with improvement. and systemic focus enhancements consistent migration other and
to committed low further earlier, we the are and capacity adjusting quarter and fourth noted volume expecting expenses in As as forward. necessary going are originations
consolidating operating both reverse we’re and addition, forward in our and servicing. In originations platforms
forward forward of We’re single benefits a and few and will reverse, both across in result focused and backbone scale we’re into execute competitors initial activities in we further for on both are we to results and reverse. optimize continue promising our one the platform forward this capability reverse has expect processes approach. strategy. that the for This going as the refine leveraging are and who and common The benefits space XXXX to
capital our Slide to on update turn for an please management Now X actions.
sources market funding year our custodial business last year The discussed during cornerstone optimizing we’re both the capital has management needs and of arrangements and we cycle. last to quarter, liquidity, MAV. As plan, of part the our this support been of this
to announce $XX of in secured digit at million. synthetic our prices. to up from incremental we net is $XX billion capital strong leverage completed the on to million MAV. MSR support capital excited with We’re contributed We’ve MSR MAV expect realized sub $XXX in returns contributed current upsize sufficient we’ve incremental UPB servicing financing this double to With
$XX investment current Our and million, dividends. stands balance cumulative at including earnings
We’re also closed of fourth second to the quarter signing to and quarter. third two one funding the expect partnership excited close We transaction MSR announce in in additional the transactions. the
bias towards driving with growth light We a are capital servicing. sub
this This sold well with flow our MSRs, while MSR between growing of We fourth to total billion, origination servicing our expect volume additions. opportunistically a fund $XXX prudently and partners new $XXX keeping billion the our in as consistent we’ve invested in through UPB year, as with portfolio sub quarter to approach. servicing roughly portion
I our investor or MSRs price introduces saying without an we’ve the it been discipline our of purchases acquisition think monetize driven Throughout year, at to to cost. [Mark goes our above to levels broker Crawford]. level able independent that at approach added MSR
or sourcing, servicing. Looking small ahead, product servicing additional reverse, to partnership and in our give asset high rise balance we believe distressed capabilities sub can and commercial opportunities assets risk unique distribution
and commitments. investor placed profitability believe achieve responsibility to team allocation resources and our to Oak want them this partners help dedicating development and to We support scale take seriously of Again, relationships Tree will MSR support achieving objectives. each at and leverage deliver are for objectives growth growth returns investors asset we our these for investor of clients capital capital will shareholders. with We across have relationships new efficient development in I maximize they the our to partners capabilities. enables our servicing business build our further thank to trust and servicing our their business and their classes to We confidence fully on flexibility
over I’ll quarter. the Now outlook for results third turn for discuss to it the fourth quarter our and Sean to
