The top 50 servicers boosted their portfolios by 1.7% during the third quarter, more than double the growth rate of the overall market. A number of companies recorded much bigger increases. (Includes three data tables.)
Mr. Cooper is working on an MSR fund with institutional investors, with plans for the nonbank to handle subservicing, while Rithm Capital is still planning a spinoff of its mortgage unit despite the tough market.
Lakeview is consistently one of the biggest players in the secondary market for agency MSR, but Chase and Mr. Cooper both recorded bigger gains during the third quarter. (Includes two data charts.)
Many owners of MSRs will have an opportunity to mark up the asset value of their holdings when reporting third-quarter results. However, the gains likely won’t be all that large.
If the National Flood Insurance Program is allowed to lapse mid-November, the impact could extend beyond single-family lending, the Congressional Research Service has warned.
What are nonbanks getting for their servicing rights in the secondary market and how much of a right does Fannie Mae have to that information? Hard to say, but some factions of the industry are bristling at inquiries from the GSE.
With interest rates continuing to head north, servicing-related assets are becoming more valuable in a parched origination landscape. SLS, a large servicer, will have a new parent and other deals may be in the works.
A handful of top servicers fell out of the market during the second quarter, while banks reported a huge gain in their ARM portfolios. (Includes three data charts.)
Trade groups representing large banks and mortgage lenders warn that a July proposal to increase capital requirements for large banks could push depositories further from the mortgage market.
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