While UWM has repeatedly raised its bid price and made other concessions, Two Harbors has opted to move forward with an acquisition by CrossCountry Mortgage.
Declining interest rates in January and February helped to push refinance business up, but not enough to offset the seasonal decline in purchase-mortgage lending in the first quarter.
“There’s probably more capital out there than what can truly trade on the MSR side,” said Chris King, a senior vice president of MSR channels at Rocket Mortgage.
Glass half full: Originations surged on an annual basis in the first quarter. Glass half empty: Lending declined on a quarterly basis as interest rates jumped in March.
As delinquencies rise, servicers will face increasing obligations for advances to MBS investors. Large servicers are expected to be able to handle the pressure while some smaller servicers could face difficulties.
“The market is forgetting how bad it can get because it’s been good for so long,” said Brian Simon, a managing director at Bungalow Funding, an MSR investor.