Profits at Rocket, Pennymac and the government-sponsored enterprises
Rocket recorded a profit of $709 million in the third quarter of 2026, a result HousingWire reported on October 29 even as it described conditions in the mortgage market as harder. Pennymac, meanwhile, posted a $29 million profit for the same period, achieved alongside reductions in expenses and with changes to its leadership on the way, according to an October 30 report. At the government-sponsored enterprises, Fannie Mae's net income climbed to $4.2 billion in the quarter, a figure dated October 28.[S1]
Freddie Mac moved in the other direction. Its third-quarter profit declined, which HousingWire attributed on October 29 to larger provisions for credit losses as projections for mortgage rates were revised upward. The contrast between the two enterprises, both of which buy loans from lenders, illustrates how accounting for expected losses can diverge even when the underlying business is similar.[S1]
Cost cuts, servicing sales and leadership turnover
Several firms used the quarter to tighten their operations. Better reported $22.9 million in annualized savings stemming from its turnaround efforts, in a report dated October 28. UWM said on October 23 that it intends to sell mortgage servicing rights worth as much as $80 billion in the fourth quarter, a move aimed at reducing its leverage. Newrez saw its third-quarter originations fall 19%, yet profits improved as servicing and technology investments contributed, according to an October 23 report.[S1]
Leadership changes are also part of the picture. Pennymac's quarterly result came with word of upcoming shifts at the top of the company, HousingWire reported on October 30. ICE, for its part, expanded mortgage technology revenue in the third quarter, helped by deals involving Wells Fargo and Freedom, in a report dated October 29.[S1]
Understand this article deeper
Banks lose ground as builders confront inventory
At the large banks, mortgage revenue declined. Bank of America's home loan volume dropped 12% in the third quarter, a result published October 14 that raised questions about the market share banks hold. JPMorgan and Wells Fargo both recorded lower mortgage revenue in the quarter, according to an October 13 report.[S1]
Homebuilders faced their own pressures. Century and Meritage finished the third quarter carrying more inventory than they wanted, HousingWire reported on October 29. Earlier, on October 19, the outlet noted that builders' ratios of inventory to backlog were flagging risk around speculative homes ahead of the earnings season. Ashton Woods, reporting October 9, emphasized discipline as orders and margins declined, while Lennar defended its even-flow and land banking strategy on September 18 as risks mounted.[S1]
