Servicing was the only mortgage category to see a quarterly drop in complaints.

"The challenge is getting the requisite understanding of risk, providing the governance infrastructure and really creating the level of transparency and understanding that allow for a less sophisticated lender to adopt this technology," said John Levonick, a senior partner at the law firm of Garris Horn.

The top five markets with a “very high risk” of home price declines are all in Florida, according to Cotality.

Onity valued its owned MSR book at 144 basis points at midyear 2025.

“Gravity is being tested,” said Mark Garland, a managing director at SitusAMC.

A key factor for some banks appeared to be a sharp decline in provisioning for credit losses.

Market share for the top five firms in owned servicing slipped from 39.5% of the top-50 market at the end of March to 39.2% as of the end of June.

In July, Rocket “restructured” general and administrative teams that supported the firm’s mortgage lending, citing investments in technology.

“[The combined operations of Rocket and Mr. Cooper] allows us to be opportunistic and stick to really high expected return thresholds, that, if we can meet them, we’ll be active and we’ll bid at those levels and if we can’t, we don’t have to,” said Brian Brown, chief financial officer and treasurer at Rocket.

The MBA projects that the average interest rate for a 30-year fixed-rate mortgage will decline from 6.8% in the second quarter of 2025 to 6.6% in the second quarter of 2026.