The amount of outstanding subprime mortgages handled by a group of prominent servicers fell by 4.1% in 3Q19. Among the 15 processors, none increased their portfolios on a sequential basis. (Includes data chart.)
Servicing portfolios stocked with jumbo mortgages continued to steadily increase in the second quarter. However, portfolio growth at the top two servicers hasn’t kept pace with the market overall.
Servicing portfolios at most of the major subprime servicers are shrinking, except at Citadel Servicing. The firm has more than doubled its servicing portfolio in the past year.
Banks and thrifts continued to increase their first-lien holdings in the first quarter, but the rate of portfolio growth is slowing. Portfolios at Wells and Chase declined in the first quarter while BofA boosted its holdings.
Jumbo servicing portfolios increased sequentially at most prominent servicers during the first quarter of 2019, though Wells Fargo and Chase posted declines. First Republic Bank's servicing model stands out.
Ocwen took another loss in the first quarter, with the nonbank's subprime portfolio continuing to decline. Only 2 of the top 15 subprime servicers increased their portfolios on an annual basis.
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