Mortgage servicer Nationstar Mortgage watched its servicing pipeline expand to $600 billion in the third-quarter and expects to grow its mortgage servicing business, at least another $30 billion, in the fourth quarter.

The Lewisville, Texas-based company's 52% year-over-year jump in third-quarter income arrives at a time when Nationstar is expanding its servicing pipeline and developing a new revenue stream through its new in-house Solutions business.

The Solutions platform will provide aspects of default servicing that were once commonly outsourced to other vendors. The unit creates opportunities for new revenue with the firm planning to provide banks, investors and originators with services tied to the platform.

Nationstar sees the solutions business line as a strong complement to existing business, which includes 16,000 REO properties and a servicing portfolio with one million customers.

The company's executives said in a third-quarter earnings conference call that with banks reducing their roles in the mortgage servicing market, Nationstar sees a significant supply and demand imbalance that it hopes to capitalize on.

With that in mind, the firm is focusing on its three-pronged approach to growth, which includes new acquisitions to expand its servicing platform, expanding its footprint with the Solutions business and focusing on its recapture rate.