Most of the companies that grew their owned servicing significantly in 2023 tapped a vibrant secondary market in bulk agency MSR. (Includes three data tables.)
Mortgage REIT Two Harbors hopes to save a ton of money by servicing its $215 billion-plus MSR portfolio in house. It also wants to be a major player in the subservicing arena and is building an origination platform to protect against a refi wave.
Not every mortgage company can issue unsecured notes at a decent price, but a handful of larger shops can, especially if they own a ton of servicing rights.
Three-plus weeks into the new year, a handful of large servicing deals are afoot. Arvest Bank is an active seller and Wells Fargo is contemplating its options as well.
Banks, nonbanks and consumer advocates have major concerns about a proposal to adjust capital requirements for large banks. The proposal would touch on mortgage lending, MSRs and warehouse lending.
Servicing values slipped in the fourth quarter, a victim of lower interest rates from mid-October to yearend. Hedging helped, but weaker escrow values played a role as well.
Ginnie Mae remained the fastest-growing sector of the agency servicing market in the fourth quarter, while Fannie Mae posted a small decline. (Includes two data tables.)
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