Critics say the data giant’s exclusive contracts with data providers and strategic acquisition of potential competitors make it impossible for new market entrants to gain scale or price competitively.
An increase in MSR values was the order of the day during the first quarter, but the markups were not significant. And some lenders had slight declines. The good news: Origination profit margins improved.
When mortgage bankers think of megabanks selling MSRs, Wells Fargo comes to mind. But U.S. Bank is selling servicing rights as well. Its latest sale: a $15 billion package of GSE rights.
Originators hate rising interest rates for the impact it has on production, but owners of servicing rights and their dealmakers couldn’t be happier. One benefit in today’s market: MSR bid prices are strong.
It’s status quo when it comes to mortgage banking M&A activity — and that’s not a good thing if you’re looking to sell. For now, it’s all about asset sales, mortgage servicing rights in particular.
San Diego-based Guild Mortgage said it’s buying origination assets from one of Utah’s largest lenders. Given the recent jump in interest rates, some believe the “roll-up” of shops is just getting started.
Servicing sales are off to a strong start in the new year, especially now with Federal Reserve interest rate cuts hardly a sure thing. Another factor is a fresh round of available capital from investors.
Three-plus weeks into the new year, a handful of large servicing deals are afoot. Arvest Bank is an active seller and Wells Fargo is contemplating its options as well.
It’s a new year and MSR sales are already beginning to heat up. But who will the most active buyers be in 2024? Count on Mr. Cooper, JPMorgan and private-equity-backed investors.
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