Commercial banks and savings institutions valued their mortgage-servicing rights at historically high levels at the end of the second quarter, even as industry leaders continued to pull back from the sector. A new Inside Mortgage Trends analysis of call-report data reveals that the industry serviced $3.563 trillion of single-family mortgages for other investors, usually loans held in mortgage-backed securities trusts. The industry total servicing for others was down ... [Includes one data chart]
The Money Source hopes to double its volume of subservicing contracts to almost $8.0 billion by yearend, capitalizing on what it feels is an underserved market: Smaller clients that don’t receive hands-on service from the giants of the industry, namely Cenlar and Dovenmuehle. At least that’s the view from TMS President Ali Vafai, who says there’s a huge “void” of subservicers that can effectively handle high-touch product, especially Ginnie Mae receivables. “The problem is that some Ginnie subservicers ...
However, bankers and advisors who ply their trade in the MSR market have told Inside Mortgage Finance there is adequate financing available to nonbanks.
The commercial-banking sector isn’t running away from the mortgage-servicing business the way it did a few years ago, but aggregate figures show the industry continues to favor whole loans over mortgage servicing rights. [Includes two data charts.]
Although servicing brokers posted brisk sales figures for the first half of the year, the third quarter has been tepid, with buyers catching their breath while trying to figure out their next move.
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