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.

Rocket leads the pack on expanding conforming-loan pricing ahead of 2024 loan limits.

Rithm will pay for the purchase using “existing” and “available liquidity” as well as servicing-backed financing.

Margin calls on MBS investors using leverage?

“It’s horrible out there,” said Mark Shenkman, CEO of Priority Financial, a nonbank based in Calabasas, CA.

“A year ago, we were flooded with deals,” said one East Coast-based MSR broker. “Now we’re not, but prices have grinded higher.”

Eric Hagen, an analyst at BTIG, said PennyMac’s offering “could lead to more, although it’s tough to say who could be next.”

An unsecured debt offering by a mortgage REIT? That’s correct. PennyMac is on the board with a small note deal. Might this be a sign of things to come?

MSR prices, especially for conventional low-coupon product, have firmed up nicely. Some large holders are cashing in. But others are choosing to live off processing income until originations snap back.

When the Federal Reserve begins cutting rates next year, the mortgage industry will become “fat” again. At least that’s what some believe. The immediate challenge: surviving until then.