Mr. Cooper remained the largest subservicer with $778.1 billion of contracts on its books at the end of June.

Over the last five years, the share of non-U.S. citizens in the non-agency mortgage-backed security market more than doubled.

"We launched an interest only mortgage product to fill in the market gap left by First Republic [Bank] and others," said Richard Raffetto, a senior executive vice president at Flagstar and president of commercial and private banking.

The planned $560.4 million issuance is the largest CES securitization yet from the nonbank, which started issuing deals in April.

The Trump administration vowed to continue the effort to fire Cook, alleging mortgage fraud.

Issuance increased by 7.8% from July and marked the strongest monthly total since November 2024.

"As we look forward, I think it’ll be gradual," Brian Brown, chief financial officer and treasurer of Rocket Companies, said of improvements in the housing market for homebuyers.

There's the possibility for a borrower to be behind by one or two months on payments, and the servicer has missed FHA's deadline to start a foreclosure.

The largest securitization in the batch is a $654.4 million prime non-agency MBS with loans originated by JPMorgan Chase Bank.

If subservicing is included in FHFA's market share cap, Rocket plans to shift some of the servicing mix at the combined Rocket/Mr. Cooper.