Officials at the bank suggest Wells won’t take much of a hit from the loss of correspondent production. And profitability on the servicing side is expected to improve as the portfolio shrinks.
Fannie and Freddie will institute their own models for assessing the values of MSRs held by seller/servicers, even if those MSRs are for mortgages not owned or guaranteed by the GSEs.
Banks and thrifts continued to see more value in their mortgage servicing rights in the third quarter, while their portfolios increased only slightly. (Includes data chart.)
Mortgage servicing right markups have allowed several companies to report net profits this year when, absent these non-cash entries, they’d be in the red. But advisors suggest some MSR holders might be pushing the envelope on their valuations.
The bulk GSE MSR transfer market is deep and wide: Some 21 companies have sold more than $10 billion so far in 2022 and 40 others have sold at least $1 billion. Coissuance activity has declined as agency business has slowed.
Over the past two years, Marlin Mortgage has made a name for itself as a buyer of conventional servicing rights. Now it is ready to pounce in the Ginnie market. A new proposed company acquisition may help.
Implementation of Ginnie’s risk-based capital requirements delayed; Fitch downgrades ratings of Finance of America, Provident; foreclosure starts decline; new alerts in Freddie’s Loan Advisor dashboard; MISMO seeks comments on three proposals; Staircase offers MSR transfer automation; LoanCare launches HELOC servicing; new LO recruitment tool.