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.)
Ginnie Mae wants to give a capital break to servicers that hedge their positions and do it well. But the government guarantor might make some changes to the language first published last week.
The MBA is focusing on regulatory reforms to help reduce the cost of mortgages. There is also some hope that Congress will pass legislation addressing trigger leads.
MSR bids are currently largely rational, though a few packages sold in recent weeks at unexpected prices, according to Brian Simon, a managing director at Bungalow Funding.
Mr. Cooper Group, already the largest primary servicer, increased its servicing volume by 2.8% during the third quarter while the amount of servicing outstanding grew by 0.8%. (Includes three data charts.)
Why might some MSR buyers pay more for recent higher-coupon portfolios than their peers? They’re confident they can recapture the customer when a refi is “in the money.”
Holders of mortgage servicing rights marked down the assets at the end of September amid a decline in interest rates. Lower rates reduce the value of MSRs by incentivizing refis.
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