The Federal Reserve will soon issue proposals revising capital requirements set under the Basel framework in a way that could increase bank involvement in mortgage originations and servicing.

Lenders are examining opportunities to retain more servicing this year as originations are expected to stay steady.

The Community Home Lenders of America reiterated its support for program revisions at Ginnie Mae to ease liquidity challenges faced by small and mid-sized nonbanks.

Setting aside Rocket Mortgage’s acquisition of Mr. Cooper Group, bulk MSR sales increased during the fourth quarter, including $58.25 billion of acquisitions by CrossCountry Mortgage. (Includes three data tables.)

Long-time industry analyst Chris Whalen said the GSE plans to disqualify some types of capital from use to calculate net worth.

Pennymac asked the Financial Accounting Standards Board to clarify accounting practices involving mortgage servicing rights and recapture assumptions. The effort has support from some major MSR buyers who are looking for a level playing field.

Low volatility and actions by the Federal Reserve are expected to help maintain demand for MSRs. Supply will also be constrained, with lenders generating profits and large firms retaining their MSRs.

High MSR prices are prompting some potential buyers to sit out. Prices are being propped up by limited supply and declining servicing costs as big firms invest in technology.

In response to deregulatory efforts by the Trump administration, the MBA and ABA suggested ways to boost bank mortgage activity.

Bulk transfers of mortgage servicing rights for loans held in Ginnie Mae mortgage-backed securities have gradually declined after peaking in the second quarter of 2024. (Includes two data tables.)