jbancroft@imfpubs.com

Transfers of agency mortgage-servicing rights increased slightly during the fourth quarter of 2019 despite tepid coissuance volume, according to a new Inside Mortgage Trends analysis of mortgage-backed securities data.

Roughly $162.46 billion of MSRs tied to Fannie Mae, Freddie Mac and Ginnie Mae MBS changed hands during the final three months of 2019, a 2.4% gain from the previous quarter. That brought year-to-date MSR transfers to $635.27 billion, up 3.8% from 2018.

Most of the MSR transfers were in bulk transactions that often reflect deals made months before the changes are recorded by the agencies – including transfers resulting from mergers and acquisitions.

In the fourth quarter, some $103.02 billion of agency servicing changed hands, up 4.0% from the previous period. The unexpected increase was largely the result of Mr. Cooper Group wrapping up the transfer of $18.47 billion of Ginnie MSRs as a result of its purchase of Pacific Union Financial back in the first quarter of last year.

For more on the story and exclusive tables on which firms are buying and selling MSRs, see the new edition of Inside Mortgage Trends, now available online.