Private-equity firms still love MSRs, apparently. But will declining mortgage rates diminish PE demand for servicing?

Believing in its prowess as a servicing recapture expert, Rocket Mortgage is itching to buy MSR packages. In other M&A news, a distillery wants to enter the origination business. Think of the cross-selling opportunities!

The Federal Reserve is widely expected to reduce the federal funds rate on Sept. 18. The initial rate cut is already priced in to mortgage rates.

Nonbanks are making money once again, which could pave the way for new nonbank IPOs. Also, some of the IPO class of 2020/2021 are trading above their out-of-the-gate prices.

The mortgage delinquency rate is rising in tandem with the unemployment rate. While early-stage delinquencies are growing, borrowers are largely avoiding foreclosure thanks to home equity and loss mitigation. (Includes data tables.)

The servicing sales market has slowed this summer, but there are rumblings of activity. Freedom Mortgage, for instance, is peeling off a piece of its conventional portfolio. And a sale of SPS is in the works.

Although nonbank advocates have long argued for FHLBank membership, new proposals from the Urban Institute address key challenges.

Refis are poised to increase and MSR values will decline as interest rates decline. United Wholesale Mortgage is prepared for the moment, having sold off a significant amount of MSRs earlier this year.

Cenlar remains the dominant mortgage subservicer in the nation despite being sanctioned by banking regulators almost three years ago. When might those sanctions be lifted? That’s hard to say.

Lenders and servicers have made significant investments in recapture capabilities in recent years for when interest rates decline and refinancing takes flight.