Most of the big banks -- even Bank of America -- reported hefty gains in mortgage banking income during the first quarter that appear largely driven by net servicing fees. (Includes data chart.)
Stavvy has secured $40 million in an initial funding round while Spruce closed on a $60 million Series C round. The vendors provide tech-related services for lenders and servicers.
Interest rates are firming up and servicing sales are proliferating. Some dealmakers believe the second and third quarters will be barn-burners in terms of transactions.
The CFPB has emphasized that servicers must pay close attention to consumer complaints. The adoption of technological solutions, though slow in this area, can help.
One lender says that when refinances go bust, the industry can’t expect to waltz into the purchase market without there being casualties. Others are more sanguine.