Margin calls from repo lenders are always a risk when collateral values decline, which is why MBS holders, like REITs, are under watch. The yield on the 10-year Treasury is at a 16-year high — that’s the bad news. The good news: This may be the peak of the cycle.

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.

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?