Investors are beginning to show renewed interest in buying servicing rights collateralized by Fannie Mae and Freddie Mac loans, in particular “flow” transactions where the product is delivered in the future on a monthly basis. Moreover, there is even talk in the market that some of the megabanks may return as active buyers now that they’ve figured out their capital exposure under the Basel III capital rules. Basel caps mortgage servicing rights at 10 percent of Tier I capital, but some large “flow” buyers of yesteryear – including Wells Fargo – are under the limit and could have room to grow. Phase in of the Basel rule began last year. “We see a day when banks are active buyers again,” said Mark ...