Once Dormant, the Market for Loans Backed by Mortgage Servicing Rights May Spring Back to Life
February 14, 2013
Ever since Taylor Bean & Whitaker went down in flames a few years ago, the market for loans backed by mortgage servicing rights has been dormant with the nations largest banks pulling out of the business and vowing never to return. But now that MSRs are considered a hot investment with nonbanks such as Nationstar Mortgage, Ocwen Financial and Walter Investment Management gobbling up billions of dollars in receivables the past few years and at bargain basement prices banks, Wall Street firms, and other players are eyeing the market for a major comeback. According to servicing advisors and warehouse firms, there are...