This is the highest level of margin compression of all banks in the peer group, reflecting the impact of the covered loan portfolio run-off
. This was exacerbated by BKU's deposit gathering efforts over the last year as the bank has conducted promotions in a rising rate environment.
Nationstar is one of the largest and fastest growing servicers in the United States and operates an integrated loan origination business that mitigates servicing portfolio run-off
and improves credit performance for loan investors.
Ocwen generated revenue of $330.8 million, down (35.2)% compared to the first quarter of the prior year, primarily driven by the impact of sales of agency mortgage servicing rights (MSRs) and portfolio run-off
In addition, Nationstar operates an integrated loan origination platform, enabling Nationstar to mitigate servicing portfolio run-off
and improve credit performance for loan investors.
Most servicers have responded to portfolio run-off
by hunting for bulk servicing buys or industry consolidation plays, or opening the spigot on new loan origination.