Servicers are working to shift from reaction-based investments in technology to forward-looking measures. That includes the use of artificial intelligence.

Changes could be underway in the subservicing sector. Number-one ranked Cenlar soon may be out from under OCC regulatory sanctions, while Select Portfolio Servicing takes a second trip to the auction block. (Includes data table.)

Delinquency rates declined during the first three months of 2024, according to the Inside Mortgage Finance Large Servicer Delinquency Index. (Includes data tables.)

Investors are seeing value in the unsecured notes of certain large nonbanks, increasing the ability of these shops to sell new debt. Not all lenders are responding, but new deals could be in the works as long as MSR keep rising in value.

The Financial Stability Oversight Council wants Congress to provide FHFA and Ginnie Mae authority to supervise nonbanks given their growing dominance of the mortgage servicing market.

A consumer advisory board meeting convened this week by the CFPB included an emphasis on issues in the mortgage market.

An increase in MSR values was the order of the day during the first quarter, but the markups were not significant. And some lenders had slight declines. The good news: Origination profit margins improved.

When mortgage bankers think of megabanks selling MSRs, Wells Fargo comes to mind. But U.S. Bank is selling servicing rights as well. Its latest sale: a $15 billion package of GSE rights.

New York Community Bank’s new leadership has plans to return to profitability. It’s not clear how residential mortgages fit into those plans.

Lenders continue to make bulk purchases to offset runoff in their portfolios and make up for anemic originations. However, demand for MSRs could be near a peak, according to industry analysts.