Not all warehouse lenders have jumped into the MSR-finance pool, but that could change over time.

On the surface, the yield looks expensive for the issuer but in a rising interest rate environment, maybe it’s not.

Servicing outstanding on 1-4 family mortgages increased by an estimated 0.8% during the third quarter. Ginnie servicing grew at more than twice that pace, fueled by refinance originations. (Includes two data tables.)

A spin-off of nonbank Newrez by Rithm Capital parent could happen in 2025. The missing ingredient: lower interest rates.

Subservicing balances are declining across the spectrum, but not all vendors are suffering. Cenlar remains the market leader, but Mr. Cooper, ranked second, is no slouch. (Includes data table.)

Some MSR buyers are offering exceptionally strong bids for servicing, counting on being able to recapture borrowers when interest rates drop. The high bids are creating some complications for sellers and MSR valuations.

Prepayment rates during the recent dip in mortgage rates were higher than expected, suggesting lenders have extra staff on hand. Still, it could be a while before interest rates fall low enough to significantly boost lending.

Increasingly, nonbanks have a large chunk of their assets tied up in mortgage servicing rights — some more than others. Is that a problem? (Includes data table.)

The former Freddie executive said eliminating mortgage servicing rights, or transferring them to the GSEs, would eliminate the need for nonbank mortgage servicers to make servicing advances on delinquent loans.

The delinquency rate on mortgages has been on the upswing this year, reaching 3.61% at the end of September, according to the Inside Mortgage Finance Large Servicer Delinquency Index. (Includes data tables.)