* total net income of $299 million and $3.29 per diluted share, equivalent to ROCE of 36% * pretax operating income of $263 million, equivalent to ROTCE of 25.2% * book value per share increased to $43.40, tangible book value per share increased to $41.56 * originations generated GAAP pretax income of $271 million and pretax operating income of $273 million on funded volume of $19.9 billion * recognized as a Great Place To Work for the third year in a row
Return on tangible equity was 25.2%, which marks the 10th quarter in a row in which we've exceeded our 12% target
Chris Marshall -- Vice Chairman, President, and Chief Financial Officer
But as you know from our sizable DTA, we're not currently paying federal taxes. For this reason, I'd point you to our pre-tax operating income of $263 million is a good proxy for cash flow, which we define using the steady
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I hope you'll agree that we've had excellent growth in TBV this year. At quarter end TBV per share was $41.56, which was up 73% year over year.
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And as you can see, growth was driven primarily by strong net income. In addition, stock repurchase added a net $0.72 a share. This was a sizable transaction, which we took advantage of due to the favorable price, but we did so in the context of our commitment to a strong balance sheet.
Looking ahead, as we make progress toward our strategic goals, we expect to generate significant growth in TBV per share. To start with, return on equity in the range of 12% to 20% will grow retained earnings and to the extent that interest rates rise faster than expected, we stand to benefit from positive MSR marks. Of course, as we've previously shared with you, we'll also evaluate monetization options for the auction exchange, which we think is certainly the most valuable of the Xome business units. And finally, as a reminder, if the Biden Administration succeeds in raising the corporate tax rate to 26.5%, that would increase our TBV by another $3 per share.
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By the way, this mark is a good reminder of the power of our balanced business model. If rates continue rising, of course, that will put additional pressure on originations for the entire industry. But we'd expect to benefit from additional markups to the MSR as well as stronger servicing margins. That's not to say that our earnings would be the same in every scenario, but growth in TBV per share should be more consistent for us than for many of our peers.
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So the bottom line is we have plenty of customers out there we can help. Now let's turn to Slide 9 and talk about our origination segment, which produced strong results, with pre-tax operating income up 28% sequentially to $273 million.
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As we've been expecting for several months now, the bulk market is starting to present us with more sizable opportunities. During the quarter, we closed on $22 billion in acquisitions, which was up 31% from the second quarter level, but our pipeline is even stronger, with $32 billion in UPB scheduled to close after quarter end.
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As we make progress toward our $1 trillion goal, we'd expect the servicing margin net of total amortization to eventually rise to about five basis points.
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This quarter, we're pleased to report the ratio increased from 13.8% to 14.5%. As you can see, the impact of our stock repurchase was more than absorbed by strong profits, the markup in the MSR and the overall lower level of assets. We expect the sale of our reverse portfolio to close in December, which will drive this ratio up to 17.5%.
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We've come a long way from the WMIH merger in 2018 as we make progress toward our strategic goals, we expect at the same time to keep strengthening our balance sheet. We're very pleased to see S&P recognize our progress with an upgrade in the quarter to B+. And I'd comment that we see ourselves on the path to eventually earning a solid BB rating.
Q&As
Chris Marshall -- Vice Chairman, President, and Chief Financial Officer
It wasn't until we started seeing more order flow come in, we feel pretty bullish about how that's going to continue to play out.
David Nierenberg -- Nierenberg Investment Management Co. Inc. -- Analyst
Nice quarter, guys. My question has mostly been answered by your follow up to Kevin Barker, when you said that, of course, five basis points on $1 trillion is $500 million. When you add to that the possibility that as your recapture rate might grow to 60% on your originations, you could earn a couple of hundred million, maybe more on that side of the business too, as you continue paring away at your share count, I can dream about $9 or $10 per share of pre-tax and untaxed income. Nice picture.
One has to ask, over time as competitors stumble and you become a more regular earnings machine, what kind of multiple you might deserve? You don't have to answer that question, but it's a very exciting prospect, and I'm really happy to be a shareholder.
Chris Marshall -- Vice Chairman, President, and Chief Financial Officer
Thank you, David. It's funny. I had that same dream last night.
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