At March 31, USB serviced $216.7 billion of one- to four-family mortgages, almost flat compared to yearend.

“They’re making money, but they just don’t know how much longer they can hang on,” said Mark Garland, managing director of SitusAMC.

The new forecast follows tariff policy changes by the Trump administration.

Onslow Bay Financial, a subsidiary of Annaly, was the biggest buyer of MSRs in the first three months of 2025.

The coupon on the heavily California portfolio is 3.13%.

Mortgages with interest rates above 6.0% accounted for 18.2% of the agency servicing market as of the end of March.

“I strongly encourage lenders to make sure they have their ‘house in order’ as we are going to make it a focus to put bad actors on our suspended counterparty program at FHFA,” said FHFA Director Bill Pulte.

JPMorgan Chase recently paid 6.5-times the servicing fee for a package of low-coupon mortgage servicing rights.

Rep. Chris Pappas, D-NH, tried to get VASP restarted until Congress passes legislation to allow for a partial claims program at VA. The effort was voted down.

“The shift of mortgage lending to nonbanks has undercut an important line of business for community banks,” said Treasury Secretary Scott Bessent.