The A-paper M&A market is in the doldrums. The reason: lenders are making money hand-over-fist and company owners are hanging on for one last shot at the refi rodeo.
Low interest rates are great for lenders but servicers are having a tough time of it, especially shops looking to unload product. One dealmaker is advising clients to sell MSRs now before they “vaporize.”
The future looks particularly bright these days for non-qualified-mortgage shops looking to sell or go public. One lender that can take down the for-sale sign is Citadel Servicing Corp.
Wells Fargo will soon have a new mortgage chief: Michael Weinbach, who comes over from JPMorgan Chase. His mission: to control the megabank’s mortgage message.
The mortgage delinquency rate hit a record low at the end of last year, helped by a strong economy. There were a few signs of performance issues, including an uptick in certain delinquency types and foreclosure starts.
Low interest rates are holding back buyers of MSRs but don’t tell that to New Residential Investment Corp. The REIT keeps acquiring bulk servicing portfolios.
With mortgage performance expected to remain steady, servicers are focusing on a number of other issues, including the transition away from LIBOR and an increase in natural disasters.