When interest rates were low, escrow accounts were an afterthought in terms of MSR values. Now that interest rates are elevated, banks are seeing strong earnings from funds held in escrow accounts.

Average loan amounts on mortgage applications are coming down as the share of first-time homebuyer applicants increases.

Issuance of non-agency MBS and GSE CRT deals will increase by 9% on an annual basis in 2024, according to projections by Kroll Bond Rating Agency.

Some 0.29% of mortgages were in forbearance as of the end of October.

The big concern: MSR packages could flood the market in the coming months as struggling lenders look for cash.

Lenders' slow moves on cutting staff as originations declined included a silver lining: improvements in customer service.

Securitization tied to financing acquisitions of MSRs dwindled in the past year, but banks are still providing financing to nonbank MSR buyers through loans.

The new issuance from Balbec Capital received a preliminary AAA rating with somewhat higher credit enhancement than a typical expanded-credit MBS. It’s the second scratch-and-dent MBS from Balbec this year.

With the supply of MSRs expected to grow, there are concerns that prices won’t hold up. Meanwhile, the CFPB is considering incentives for lenders to retain servicing.

Delinquencies in the 30-60-day bucket are increasing in line with trends in unemployment. Foreclosures remain limited though there are concerns about borrowers with low levels of built-up equity. (Includes data table.)