For the most part, the uniform MBS 2.0 (Fannie Mae/Freddie Mac) remains the industry’s benchmark as lenders continue to produce new loans —and MBS — at a decent clip but under a cloud of lower profit margins.
Some servicing brokers have suggested to IMFnews the RFI, in some cases, has caused buyers of Ginnie servicing rights to reduce the value of their bids.
MSR offerings won’t get frothy until mortgage lender/servicers, especially those of the publicly traded variety, feel the heat from company owners — and investors — to keep the earnings gravy train going...
MBS trading has been relatively quiet the past two months and much lower than early in the year. Then again, traders have other things on their minds, namely what might be said Friday regarding central bank tapering.
Subservicers have shown steady gains the past few years but they could be inundated with new work — and headaches — if COVID-related foreclosures turn ugly once the federal moratoria end. (Includes data chart.)