Last year was simply awful for anyone involved in the mortgage space. Mortgage originators saw volumes collapse as the Fed hiked interest rates aggressively to halt inflation. Mortgage real estate investment trusts (REITs) watched their portfolios drop in value as mortgage-backed securities underperformed Treasuries.

That said, not all mortgage participants underperformed. Those that had a big focus on mortgage servicing did well. This explains how PennyMac Financial Services (NYSE: PFSI) remained profitable in 2022. 

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Source Fool.com