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.

MBA increases odds of a recession within next 12 months; new tools to verify employment, income; downpayment size increases in 2024; new proposals from MISMO; lender raises funds; Cardinal offers processing for brokers; new hire at Nationwide Mortgage Bankers.

With bids for MSRs remaining strong, Guild Mortgage sharply reduced the share of its mortgages originated with servicing retained in 2024.

For the full year, though, total bank repurchases declined to $1.02 billion, down 23.8% from 2023. (Includes data table.)

While banks’ servicing-for-others balance declined in the fourth quarter of 2024, the industry put a higher valuation on the asset. Top-ranked JPMorgan Chase and Wells Fargo continued to reduce their portfolios. (Includes data table.)

It might be said that Mr. Cooper has timed the servicing market perfectly. While other shops grow tired of the vicissitudes of interest rates and MSR marks, Mr. Cooper has pounced, gobbling up portfolios that have only grown in value as rates stay stubbornly high.