Onity revised the terms of its sale of home equity conversion mortgage servicing rights to Finance of America Reverse after receiving feedback from Ginnie Mae.

Some large servicers are using securitizations for MSR financing while mid-size and smaller servicers stick with bilateral agreements.

“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.

“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.

The real estate investment trust’s residential credit business was the most profitable during the first quarter of 2026. The company has sharply increased its investments in the segment.

A FASB taskforce recommended that accounting practices for mortgage servicing rights should include recapture in valuations.

Freedom Mortgage plans to acquire private equity-backed Seneca Mortgage Servicing and its billions in non-government mortgage servicing rights.

Bank and mortgage industry groups are calling for broad reforms to bank capital requirements. Meanwhile, reactions to pending proposals from the Fed tied to bank mortgage holdings and MSRs were mixed.

Servicing for others by banks declined by 0.6% during the fourth quarter of 2025. Meanwhile, the fair value of MSRs classified as serviced for others increased. (Includes data table.)

Pending proposals from the Fed would impact MBS market; Moody’s looks to rate securitizations of home equity loans.