While several top buyers of bulk MSR focused on high-coupon servicing from which they can harvest refinance business, the first quarter’s top buyer was mostly interested in prepay-protected lower-rate MSR. (Includes three data tables.)

Mortgages with interest rates above 6.0% accounted for 18.2% of the agency servicing market as of the end of March.

MBS backed by home equity loans originated by nonbanks was the fastest-growing sector of the non-agency market in the first quarter. Both prime and ECM issuance continue to grow as well. (Includes three data tables.)

Lakeview Loan Servicing remained the largest player in the agency servicing market at the end of the first quarter, but the industry’s biggest-ever servicer is in the wings. (Includes two data tables.)

Most of the decline was in agency refinance business.

Issuance in the first quarter of 2025 declined compared with the fourth quarter of 2024. However, issuance was above the level seen in the first quarter of 2024.

Issuance of new residential MBS, commercial MBS and ABS in early 2025 declined about 9% from the fourth quarter, although most sectors were up compared to a year ago. Monthly trends in March were mixed. (Includes three data tables.)

Agency refinance volume was down sharply in the first quarter but it got off to a faster start than in early 2024. Most measures of agency volume were down, but the share of higher-risk loans was trending higher. (Includes two data tables.)

Four rating services gained on Fitch in 2024 in terms of rating share for non-agency MBS issuance.

The turnaround in servicing profitability was driven by markups in the value of mortgage servicing rights net of hedging efforts.