Servicing bids are off their highs for the year, but the situation could be temporary. As originations wane in the quarters ahead, nonbanks could flood the market with more auctions.

According to new research paper, nonbanks use their MSRs to help fund operations in a rising rate environment, resulting in stronger originations in comparison to banks.

When rates increased substantially in the first quarter, many nonbanks moved aggressively to mark up the asset value of their MSR portfolios. There’s nothing wrong with that, but the volatile nature of servicing makes regulators nervous. (Includes data chart.)

Sale of bulk MSR packages have been white-hot the past 18 months, but a pause could be in the works, some investment bankers suggest. Still, any kind of lull may not last for long.

With some mortgage companies trading below their liquidation value, is now the time to stage a takeover? It depends. Meanwhile, former FHFA Director Mark Calabria this week broke his silence on what may lie ahead for Fannie Mae and Freddie Mac.

Sharply higher interest rates clobbered origination income in the first quarter of 2022, but there was a silver lining to this dark cloud: higher MSR valuations. (Includes data chart.)

It’s been a difficult couple of years for USAA, losing money and getting sanctioned by regulators. The latest development: The bank is selling the ownership rights to its MSRs.

Delinquencies, after spiking at the start of the pandemic, are back at manageable levels. Serious delinquency rates are still elevated, though. (Includes data chart.)

Federal agencies want servicers of government-backed mortgages to pause foreclosure proceedings when the homeowner’s application for relief under the Homeowner Assistance Fund is pending.

An active secondary market in agency servicing rights helped a number of second-tier nonbanks build their owned servicing portfolios significantly in the first quarter. (Includes three data charts.)