In owned servicing — which tracks the owners of mortgage servicing rights and whole-loan portfolios — the nonbank share increased from 55.9% as of the end of March to 56.9% at the end of June.

HUD said the changes will better align its regulations with advances in electronic communication technology and borrower engagement preferences, while preserving consumer protections.

The nonbank acquired servicing with a total unpaid principal balance of $20.8 billion during the second quarter with an eye on refinances.

Michael Bright, CEO of the Structured Finance Association, predicted that the CFPB will soon bring another lawsuit involving ABS following a tepid reaction from the securitization market to a lawsuit by the bureau against a student loan ABS.

Onity stressed that both its originations and servicing segments were profitable on a pre-tax basis.

At the end of June, large nonbanks accounted for 39.0% of all government-sponsored enterprise servicing, up from 37.6% in March.

Nierenberg was asked during the call if Rithm is still considering spinning off Newrez. “Yes,” he said. “I don’t know if it’s just a direct listing or something. We’re looking at anything and everything as a way to increase value for shareholders.”

At mid-year, Newrez owned $596 billion of servicing rights with an additional $214 billion of subservicing contracts on its books.

Two Harbors Investment posted $56.3 million of net income in the second quarter of 2024, a 72.3% decline from the previous quarter.

Mortgage applications declined as potential borrowers ponder where interest rates will go next.