Subservicing volume declined during the third quarter, which might explain some of the recent consolidation in the space.

Black Knight didn’t receive all of the damages it sought from PennyMac while the nonbank servicer is now free and clear to use proprietary technology that’s less expensive than Black Knight’s offerings.

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.

When interest rates were low, escrow accounts were an afterthought in terms of MSR values. Now that interest rates are elevated, banks are seeing strong earnings from funds held in escrow accounts.

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.

Delinquencies in the 30-60-day bucket are increasing in line with trends in unemployment. Foreclosures remain limited though there are concerns about borrowers with low levels of built-up equity. (Includes data table.)

Federally insured depository PNC has been trimming the head count in its origination business while bulking up on mortgage servicing rights.

New guidance from the Financial Stability Oversight Council makes it easier for FSOC to increase regulatory requirements for large nonbank financial companies. The move doesn’t sit well with the mortgage industry.

Cenlar, the largest subservicer in the mortgage industry, has been on a middle- and senior-manager hiring spree the past 18 months as it tries to meet the demands of an OCC consent order filed two-plus years ago.

Mr. Cooper said customers would not incur fees, penalties or negative credit reporting due to late payments related to the shutdown.