The NCUA board in December voted 2-1 to allow federal credit unions to acquire MSRs from other FCUs. The lone dissenting vote came from Todd Harper, who was just appointed NCUA chairman.

The proposal, if issued, will allow credit unions to purchase MSRs as an investment.

The flow market for MSR sales is returning to normal after COVID-related volatility in March and April caused demand for MSRs to wane. Traditional sellers of MSRs retained servicing this summer, helped by profits from the refi business.

Subservicing firms continued to grow in the first quarter, albeit at a slower pace. The reason: Coronavirus and a lack of flow deals. (Includes data chart.)

The mortgage servicing business is regaining stability but MSR sales are still elusive and valuations are well below pre-COVID-19 levels.

The CFPB will use supervisory feedback, rather than enforcement actions, to identify compliance issues in MSR transfers during the pandemic.

Plenty of investors are looking to acquire servicing rights, including a handful of banks, according to industry participants. The outlook for the sector is rosy, though early-stage delinquencies are on the rise.

The market for servicing sales remains strong, according to industry participants. A number of lenders are looking to sell mortgage servicing rights after weighing capital requirements and cash needs with the potential to retain borrowers, according to an analysis by Strategic Mortgage Finance Group.

Sales of bulk mortgage servicing rights spiked by almost 19% last year to $482.4 billion, but 2019 could be even better.

Nonbanks were the top buyers and sellers of bulk mortgage servicing portfolios last year, according to a tally from affiliate publication Inside Mortgage Trends. [Includes one data chart.]