Bulk transfers of agency MSR declined in the second quarter, partly due to reduced demand for higher-coupon portfolios. While coissuance volume was up, it failed to match the gains in agency securitization of lightly seasoned mortgages. (Includes three data tables.)

While early-payment delinquency rates showed increases, the rate for loans 120 days or more late declined. Across all three agencies, overall 3.32% of mortgages were past due. (Includes data table.)

Declining equity and surging escrow payments may be a precursor to market stress in some parts of the country, analysts say.

Income from production and servicing fell in the first quarter, but not by as much as origination volume. The MBA reported fewer firms were profitable than in the previous period. (Includes data tables.)

The amount of mortgage servicing handled by banks and savings institutions for other investors continued to shrink in the early months of 2025. (Includes data table.)

The nonbanks took negative marks on their large holdings of mortgage servicing rights as hedges didn’t fully offset a decline in interest rates on mortgages during the first quarter.

While several top buyers of bulk MSR focused on high-coupon servicing from which they can harvest refinance business, the first quarter’s top buyer was mostly interested in prepay-protected lower-rate MSR. (Includes three data tables.)

In a seasonal trend seen each of the past five years, the delinquency rate declined on securitized government-sponsored enterprise loans, FHA mortgages and Department of Veterans Affairs home loans. (Includes data table.)

Fitch Ratings warned that it could downgrade its corporate rating on Rocket following the company’s planned acquisition of Mr. Cooper. Rocket’s corporate leverage looks poised to increase.

Among servicers assessed by Fitch, Chase has one of the highest ratings.