Impac Mortgage Holdings is about to unload what’s left of its MSR assets. Meaning?

The servicing acquisition market often gets whipsawed by falling interest rates. But it now has a bigger enemy: financial uncertainty.

The A-paper M&A market is in the doldrums. The reason: lenders are making money hand-over-fist and company owners are hanging on for one last shot at the refi rodeo.

Low interest rates are great for lenders but servicers are having a tough time of it, especially shops looking to unload product. One dealmaker is advising clients to sell MSRs now before they “vaporize.”

In a plan that began at least as far back as 2016, the FHLBanks actively considered buying one of the government-sponsored enterprises. Even senior staff at Treasury and FHFA were involved.

If billionaire Mike Bloomberg starts looking like a front-runner in the 2020 presidential elections, putting out stock offerings on Fannie Mae and Freddie Mac could prove difficult.

The future looks particularly bright these days for non-qualified-mortgage shops looking to sell or go public. One lender that can take down the for-sale sign is Citadel Servicing Corp.

Loan applications took a dive last week but for the most part lenders remain optimistic about the months ahead. Meanwhile, a fintech lender plans to buy a bank, an industry first.

Low interest rates are holding back buyers of MSRs but don’t tell that to New Residential Investment Corp. The REIT keeps acquiring bulk servicing portfolios.

Nonbanks might need to come up with additional cash to hold against their MSR positions if the FHFA gets its way. A game changer? Probably not.