Bank and mortgage industry groups are calling for broad reforms to bank capital requirements. Meanwhile, reactions to pending proposals from the Fed tied to bank mortgage holdings and MSRs were mixed.

No new housing initiatives from President Trump; mortgage applications steady; home prices increase modestly in 2025; Democrats in Senate introduce bill aimed at limiting SFR institutional investors.

The Federal Reserve will soon issue proposals revising capital requirements set under the Basel framework in a way that could increase bank involvement in mortgage originations and servicing.

Pennymac’s deep expertise in servicing its own book of business uniquely positions the company to acquire subservicing giant Cenlar, according to industry analysts.

Delinquencies continue to rise but industry participants stress there’s no cause for concern. They pointed to a change in FHA loss-mitigation policies during the fourth quarter and “market recalibration.” (Includes two data tables.)

Lenders are examining opportunities to retain more servicing this year as originations are expected to stay steady.

Unemployment and inflation are leading to an increase in delinquencies and foreclosures.

Rocket Mortgage ended the fourth quarter of 2025 with more than $2 trillion in primary servicing, thanks to its acquisition of Mr. Cooper Group. And for the first time a bank isn’t first in owned servicing. (Includes three data tables.)

Nonbank lender Rate expects to expand the use of AI in its originations and sales processes this year.

The fastest-growing sector of the agency servicing market was the cohort with coupons of 5% to 6%, which was up 11.8% in the fourth quarter. MSR with rates above 6% surged to $2 trillion. (Includes two data tables.)