Agency MSR sales fell sharply from the fourth quarter of 2018 to the first three months of this year, according to an exclusive Inside Mortgage Trends analysis. Much of the downturn resulted from a return to more normal levels of Ginnie bulk deals.
Loan originators have to look for a good fit when they're searching for a coissuance partner for their servicing rights, experts say. That may mean leaving some cash on the table in exchange for predictability and ease of transaction.
A handful of nonbanks with limited production capacity saw significant gains in their GSE servicing portfolios during the first quarter, including New Residential Investment, Matrix Financial Services and Pingora Loan Servicing. Overall, Fannie/Freddie MSRs grew $9.1 billion from December.
New Ginnie Mae mortgage-backed securities volume in the first quarter of 2019 declined to the lowest level in nearly five years. Total single-family MBS production fell 15.7% sequentially to $76.97 billion.