It’s been a difficult couple of years for USAA, losing money and getting sanctioned by regulators. The latest development: The bank is selling the ownership rights to its MSRs.
Delinquencies, after spiking at the start of the pandemic, are back at manageable levels. Serious delinquency rates are still elevated, though. (Includes data chart.)
Federal agencies want servicers of government-backed mortgages to pause foreclosure proceedings when the homeowner’s application for relief under the Homeowner Assistance Fund is pending.
An active secondary market in agency servicing rights helped a number of second-tier nonbanks build their owned servicing portfolios significantly in the first quarter. (Includes three data charts.)
The two REITs have seen success even as profits from mortgage lending decline thanks to diversification efforts involving business-purpose lending and venture capital investments.
Trade groups representing smaller nonbank seller/servicers say it’s the larger nondepositories, with nearly 70% of the market, that pose the biggest risk to Fannie and Freddie.
Freddie continued to be the fastest-growing sector in agency servicing. Freedom Mortgage was a major seller in the first quarter, while Lakeview and Chase posted big gains. (Includes two data charts.)