The Structured Finance Association warned the CFPB's servicing proposal would decrease the value of mortgage servicing rights, leading to a substantial negative impact on the secondary mortgage market.

“After reviewing the comments and reconsidering the proposed rule’s substantive and procedural amendments, FHFA has determined that a number of material changes to the rule are necessary,” the agency said.

Among the top five subservicing vendors in the second quarter, volume changes compared with the end of March ranged from a 6.3% decline at Cenlar to a 4.8% increase at Mr. Cooper.

Beginning Dec. 9, servicers must use Freddie’s Resolve default management tool to complete the following actions: charge-offs, foreclosure sale reporting, custom modifications, deed-in-lieu of foreclosure and third-party foreclosure sale settlements.

Refis accounted for 55.7% of mortgage applications last week.

A proposal suggested by Rohit Chopra, director of the CFPB, could be difficult to implement in the mortgage market.

Annual readings for home price appreciation are close to falling below the increase in conforming loan limits some lenders have offered for 2025.

One advisor estimated it can take a fund — PE or hedge — 18 to 24 months to enter the MSR market.

At the end of June 2024, the GSEs accounted for 47.6% of servicing outstanding.

Mortgage market participants are adjusting following the rate cut by the Federal Reserve.