The flow market for MSR sales is returning to normal after COVID-related volatility in March and April caused demand for MSRs to wane. Traditional sellers of MSRs retained servicing this summer, helped by profits from the refi business.
Subservicing firms continued to grow in the first quarter, albeit at a slower pace. The reason: Coronavirus and a lack of flow deals. (Includes data chart.)
Plenty of investors are looking to acquire servicing rights, including a handful of banks, according to industry participants. The outlook for the sector is rosy, though early-stage delinquencies are on the rise.
The market for servicing sales remains strong, according to industry participants. A number of lenders are looking to sell mortgage servicing rights after weighing capital requirements and cash needs with the potential to retain borrowers, according to an analysis by Strategic Mortgage Finance Group.
Nonbanks were the top buyers and sellers of bulk mortgage servicing portfolios last year, according to a tally from affiliate publication Inside Mortgage Trends. [Includes one data chart.]
Just days into the new year, Mr. Cooper agreed to buy Seterus and its $48.0 billion servicing platform. Now comes the big question: Which firm or portfolio is next on its hit list?
Is Onity Group eyeing a sale? Perhaps. And why not? Servicing values are approaching a 25-year high.
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