Banks and Thrifts Continue to Backpedal From Mortgage Servicing Market in 1Q17
June 16, 2017
The banking industry retreated a little further from the business of servicing mortgages for other investors during the first quarter of 2017, although a change in reporting requirements made the change look a little bigger than it really was. A new Inside Mortgage Trends analysis of bank call reports shows that commercial banks and savings institutions serviced a total of $3.640 trillion of home mortgages for other investors, typically mortgage-backed securities trusts. These are mortgage servicing rights that the bank owns; in some cases a third party may perform the actual servicing and in others the bank may provide subservicing on MSR it doesn’t own. The March servicing-for-others figure was...[Includes one data table]