"With the recent drop in rates, our origination business finished the quarter with our biggest month in lock volume since early 2022, Newrez President Baron Silverstein said during an earnings call on Thursday morning. While market competition continues to drive margin pressures, our disciplined focus remains on profitable growth with an eye for market opportunities. On the origination side, Newrez delivered $80.4 million in pretax income in Q3 2025, down from $86.6 million in Q2."
"Newrez's servicing business saw pretax income rise to $660.3 million in Q3, compared to $233.6 million in the second quarter. Its servicing portfolio reached $878 billion in unpaid principal balance (UPB), up 7% year over year. This includes $282 billion of third-party servicing, an increase of 21% from the previous year. Our special servicing platform is the best in the business, and we continue to gain market share as shown by increases in our third-party UPB, Silverstein said."
"We're also excited about a new partnership with Wells Fargo, which validates our nonagency servicing leadership in the industry. Newrez entered into an agreement with Wells Fargo to purchase a legacy PLS portfolio, with expectations to begin the transfer next year. BTIG analysts estimate Newrez can recapture 40% to 50% of its servicing portfolio if mortgage rates fall another 25 bps, versus their estimate for total originations next year of about $75 billion."
Newrez saw origination lock volume surge after a drop in rates, with Q3 2025 origination pretax income of $80.4 million, down from $86.6 million in Q2. Funded production totaled $16.4 billion, up 3% year over year, driven mainly by the correspondent channel. Origination margins declined to 114 basis points from 122 bps due to channel mix and increased government streamline refinances. Servicing pretax income rose to $660.3 million, and servicing UPB reached $878 billion, up 7% year over year, including $282 billion of third-party servicing. Newrez agreed to buy a legacy PLS portfolio from Wells Fargo and expects transfers next year. BTIG projects 40–50% servicer recapture if rates fall another 25 bps. Executives do not plan an IPO soon.
Read at www.housingwire.com
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