The REIT has built up strong residential and MSR businesses to diversify risk and support its agency prowess. And while it’s held back on increasing leverage, once volatility declines, all that may change.

For now, the market is well served by two to four master servicers. But if any of them exit the market, servicing costs and transaction fees could increase.

Loan repurchases from Ginnie MBS in the first quarter of 2022 neared pre-pandemic levels as delinquency rates declined. Loan removal trends vary among the top servicers. (Includes two data charts.)