2019 seemed like a slow year for mortgage-related acquisitions, but if you look beneath the surface, deals were getting done, particularly in the non-QM sector.
Investment bankers that buy and sell mortgage servicing rights are starting to feel like the Maytag repairman. But deal activity is set to improve in the first quarter of 2020, or so they hope.
The non-QM market has been so hot this year that M&A activity is beginning to pick up a head of steam. Luxury Mortgage is the latest lender to pull the sale ripcord. There could be more.
HPS Investment Partners, a firm chock full of Wall Street veterans, has agreed to buy non-QM lender Citadel Servicing Corp. After the sale closes, CSC founder and CEO Dan Perl will part ways with the firm.
Origination pipelines remain full and lenders, for the most part, are feeling optimistic about profits. Can it last? Probably, as long as rates remain low.
Based on reports from non-QM lenders Angel Oak and Citadel, the third quarter was a strong one for most originators. Meanwhile, the Ditech wind-down is almost over.
Bulk mortgage servicing sales have been slow in the third quarter, but that doesn’t mean bidders have been hibernating. If rates rise just a little bit and stay there, auctions of MSRs could boom.
Growth in subservicing contracts slowed a bit in the second quarter as con-tinued low interest rates took their toll. It’s anticipated that once rates in-crease, more vendors could disappear through M&A.
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