Lenders are facing a tough market for originations, helping to prompt sales of servicing. The supply of MSR is coming both from older vintages with interest rates well below current rates and new production in which a lender might not want to hedge the MSR.

MSR bids are currently largely rational, though a few packages sold in recent weeks at unexpected prices, according to Brian Simon, a managing director at Bungalow Funding.

The increase in sales of Ginnie MSRs was tied to bulk sales by United Wholesale Mortgage. Lakeview/Bayview Loan Servicing was — by far —the top bulk buyer of Ginnie servicing. (Includes two data tables.)

There’s more demand for mortgage servicing rights than there is supply at the moment, helping to keep prices for the assets elevated. Even if MSR sales increase this year, prices are expected to remain firm.

The equity investment is led by Liberty Strategic Capital, a firm headed by former Treasury Secretary Steven Mnuchin.

Cardinal Financial plans to offer the industry’s first security backed by VA mortgages scored with FICO 10 T.

The servicing side of the business continues to be a source of strength for mortgage bankers fortunate enough to own MSRs. Sales have been strong throughout most of 2023, just not as strong as last year.

With the supply of MSRs expected to grow, there are concerns that prices won’t hold up. Meanwhile, the CFPB is considering incentives for lenders to retain servicing.

Lenders hurting for cash are expected to sell off MSRs and there are numerous buyers for the product.

Proposal for higher capital requirements on mortgages at larger banks expected next week; House passes defense spending bill without RON provision; Umpqua Bank selling one-third of its MSRs; MISMO publishes fee- naming guide; PrimeLending offering fast loan approvals; lender offers AI chatbot to potential borrowers.