Mr. Cooper is working on an MSR fund with institutional investors, with plans for the nonbank to handle subservicing, while Rithm Capital is still planning a spinoff of its mortgage unit despite the tough market.

The flurry of bulk sales of mortgage servicing rights continued into the third quarter, helping shift market share in the GSE market to larger firms. (Includes two data tables.)

Mr. Cooper net income up in 3Q23; MBA reports mortgage applications down week-over-week; Redfin reports more homebuyers are moving out of state; Finance of America expands new reverse mortgage program to direct-to-consumer and wholesale channel.

Top executives of Freedom Mortgage, NewRez and Mr. Cooper said servicing operations have helped them sail through the originations storm.

Mr. Cooper’s servicing portfolio is expanding while the number of employees in the nonbank’s call center is declining. Investment in technology is helping to reduce costs and fuel servicing growth.

Chase Home Finance solidified its position as the largest GSE servicer in the second quarter while the servicing portfolio at second-ranked Wells Fargo continued to shrink.

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

The inspector general found fault with how the industry in general and Mr. Cooper in specific handled pandemic-era loss mitigation.

Mortgage servicers didn’t always sufficiently comply with FHA loss-mitigation requirements for borrowers whose COVID-19-related forbearance had ended, the inspector general for the Department of Housing and Urban Development said this week.

Some experts expect MSR trading to top $1 trillion in each of the next three years, surpassing the approximately $900 billion traded in 2022.