MCT and Mr. Cooper teamed up on a white paper explaining the nuances of co-issue MSR sales.

Expanded use of bid-tape AOT transactions and mandatory mortgage deliveries increase lender efficiencies and boost profits, according to hedge consultancy Mortgage Capital Trading.

The hedge advisor’s automation of the assignment-of-trade process allows lenders to save on bid-ask spreads and increases efficiencies for correspondent investors.

The San Diego-based capital markets advisor’s white paper walks originators through the theory of pipeline hedging.

Hedging experts recommend to-be-announced strategies for the post-QE world.

MCT and Freddie Mac experts discussed the strategies of managing MSR assets. While some firms are interested in the best financial deal they can get, others are focused on retaining clients.

Before the pandemic, lenders sold their MSR 80% of the time but after COVID, they retained 70% of their MSRs. Now, the split is 55/45.

Some experts now say Federal Reserve purchases of agency MBS will fall to zero by September.

Small lenders may be able to avoid some of the margin requirements by diversifying the pool of broker-dealers they use for hedging.

The industry veteran asks: If the GSEs lose their largest buyer, where will the money come from to support the 30-year, fixed-rate mortgage?