Nonbanks handled servicing on the majority of mortgages outstanding for the first time as of the first quarter of 2024. While nonbanks have been the majority servicers in the MSR market for years, the broader servicing tally includes whole loans. (Includes two data tables.)
Cybersecurity insurance is getting more difficult for mortgage companies to obtain and some lenders appear to be unable to meet reporting requirements set by the GSEs on security.
Servicers are working to shift from reaction-based investments in technology to forward-looking measures. That includes the use of artificial intelligence.
Changes could be underway in the subservicing sector. Number-one ranked Cenlar soon may be out from under OCC regulatory sanctions, while Select Portfolio Servicing takes a second trip to the auction block. (Includes data table.)
Delinquency rates declined during the first three months of 2024, according to the Inside Mortgage Finance Large Servicer Delinquency Index. (Includes data tables.)
Investors are seeing value in the unsecured notes of certain large nonbanks, increasing the ability of these shops to sell new debt. Not all lenders are responding, but new deals could be in the works as long as MSR keep rising in value.
The Financial Stability Oversight Council wants Congress to provide FHFA and Ginnie Mae authority to supervise nonbanks given their growing dominance of the mortgage servicing market.
An increase in MSR values was the order of the day during the first quarter, but the markups were not significant. And some lenders had slight declines. The good news: Origination profit margins improved.
Is Onity Group eyeing a sale? Perhaps. And why not? Servicing values are approaching a 25-year high.
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