One bidder recently agreed to pay north of 6.25 times the servicing fee for a high dollar volume of agency MSR. Sound crazy? Maybe, but servicing prices are at a 25-year high for low-coupon product.
Loans in Ginnie Mae MBS accounted for 17.7% of total single-family mortgage servicing outstanding as of the end of 2024, up from a 17.0% share at the end of 2023. Nonbanks continue to gain share.
There’s a new market leader in the subservicing arena: Mr. Cooper. But with the OCC ready to lift sanctions against number-two-ranked Cenlar, a dog fight could be ahead.
A few months back, Marlin Mortgage parted ways with COO Steve Stone. Now, describing himself as a whistleblower, Stone is suing the MSR owner, accusing the firm of a host of questionable moves.
Market indicators suggest the Federal Reserve could cut rates three times this year while the MBA anticipates only one rate cut. A REIT that invests in agency MBS and servicing is shunning MSR for the moment.
The Mortgage Bankers Association defended servicers from criticism for the financial incentives they receive from FHA home-retention programs, arguing that the work involved outweighed the compensation.
MSR buyers believe that there will be plenty of supply of the asset this year as mortgage originators face difficulties from high interest rates. UWM, the largest lender in the industry, is willing to sell if the price is right.
Rate is contemplating selling its title unit, a move that comes amid some states capping how much coverage providers can charge consumers. Meanwhile, the nonbank is selling MSRs on a regular basis.
Trump’s election win stalled the Biden administration’s effort to impose tougher capital requirements for banks. Federal regulators are likely to continue to work on the reforms, but in a more bank-friendly way.
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