PE shops have quietly entered the MSR arena as owners, reaping strong gains. How long they might stick around depends on the direction of interest rates.
As loan volumes head south, more potential buyers are slated to come out of the woodwork, but don’t expect any premiums to be paid. We found at least two mid-sized shops that are in the hunt for deals.
After a respite of sorts, the insatiable appetite for mortgage servicing rights revives. Meanwhile, Better.com and its founder find themselves on the wrong end of a civil damages claim.
Servicing bids are off their highs for the year, but the situation could be temporary. As originations wane in the quarters ahead, nonbanks could flood the market with more auctions.
How do you know when a mortgage cycle has reached its nadir? When originators produce loans at a loss. We’re not there yet but we could be close. Meanwhile, just because a lender announces a stock buyback that doesn’t mean it will happen.
Sale of bulk MSR packages have been white-hot the past 18 months, but a pause could be in the works, some investment bankers suggest. Still, any kind of lull may not last for long.
With some mortgage companies trading below their liquidation value, is now the time to stage a takeover? It depends. Meanwhile, former FHFA Director Mark Calabria this week broke his silence on what may lie ahead for Fannie Mae and Freddie Mac.
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