The MSR sales market is starting to firm up a bit — and just in time. A handful of large packages are available, including two from Wells Fargo and one from a large nonbank. But will these deals get done?
Commercial banks continue to look sideways at the residential lending business, wondering why they should be in it at all. Some are getting out while others are scaling back significantly.
Wells Fargo is no longer in love with the mortgage business. We all know that, but is the bank contemplating large-scale sales of its massive MSR portfolio? Not likely.
It’s a safe bet that further job cuts are in the cards for most mortgage franchises. But is the worst of the personnel bloodletting over? That’s hard to say. The optimists out there are hoping for a stronger second half.
Tongues were wagging late in the week concerning a possible $85 billion package of MSRs hitting the auction circuit. Some suggested it might turn out to be a privately negotiated deal with two buyers.
A handful of company sales came to light this week, all involving nonbanks. The activity suggests the first quarter of 2023 could be a busy one for M&A.
Mortgage servicing rights are still a hot commodity and new investors continue to surface, but prices aren't what they used to be. One bright spot: Credit quality looks promising, at least on conventional rights.
Will investors be interested in buying shares in a special purpose acquisition company that houses a bank/warehouse lender and assets put together by fintech guru Mike Cagney? Maybe in “normal times,” but we’re not operating in normal times.
Even though originations are down roughly 50% this year, investors are still willing to buy mortgage companies, believing the downturn won’t last forever. Of the sales that have occurred, many involve asset transfers.
Most subservicing specialists have experienced tepid growth the past few quarters. The reason? A red-hot bulk sales market is one possibility. Meanwhile, a few top-ranked vendors are about to have new owners. (Includes data chart.)
RSS