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.]

Just days into the new year, Mr. Cooper agreed to buy Seterus and its $48.0 billion servicing platform. Now comes the big question: Which firm or portfolio is next on its hit list?

Declining profit margins and reduced production levels will push more inde-pendent mortgage companies to sell servicing. But falling interest rates might squash MSR prices.