When it comes to borrowing money in the secondary market these days, mortgage servicing rights are a great form of collateral. Reason? Rates are high and the asset will stick around for a long time.
Non-QM rates are now north of 7% in many cases, but the market is still dealing with upwards of $5 billion in lower-coupon product that needs to be moved.
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.