Not all depositories are retreating from the MSR market. The credit union industry reported a combined $197.6 billion in mortgage servicing for others at March 31, up 1.5 percent…
The banking industry retreated a little further from the business of servicing mortgages for other investors during the first quarter of 2017, although a change in reporting requirements made the change look a little bigger than it really was. A new Inside Mortgage Trends analysis of bank call reports shows that commercial banks and savings institutions serviced a total of $3.640 trillion of home mortgages for other investors, typically mortgage-backed securities trusts. These are mortgage servicing rights that the bank owns; in some cases a third party may perform the actual servicing and in others the bank may provide subservicing on MSR it doesn’t own. The March servicing-for-others figure was...[Includes one data table]