The Housing Policy Council proposed bifurcation of servicing advances from MSRs to create a new source of collateral for servicers.

The proposal was prompted by a request from Pennymac, which noted differences in MSR valuations among public companies.

Economists at both Fannie Mae and the MBA project that mortgage rates will average 6.8% in the fourth quarter. Rates started the quarter well above that level with no indications that they’re coming down.

Rocket’s acquisition of Mr. Cooper and Pennymac’s pending acquisition of Cenlar have prompted some changes in market share. M&T Bank posted a sharp increase in subservicing in the second quarter. (Includes data table.)

The GSEs’ share of servicing topped out at 50.4% in March 2022 and has declined each quarter since then. (Includes two data tables.)

The Federal Reserve hiked the federal funds rate by 25 bps this week. The move was already baked into mortgage rates, which aren’t expected to climb much higher even if the Fed hikes rates twice more in the next 12 months.

Pennymac and Rocket are focused on developing scale and technology to drive down costs as originations are expected to remain muted due to the higher-for-longer interest rate environment.

The lender will retain mortgage servicing rights on its originations in an effort to increase borrower retention.

Some subservicers are offering to pay deboarding fees charged by competing subservicers to help prompt transfers. MSR owners have some hesitation beyond fees, including risks from transfers.

UWM President and CEO Mat Ishbia sees the equity from Oaktree as a positive. Shareholders and industry analysts aren’t convinced.