Mortgage REIT Two Harbors hopes to save a ton of money by servicing its $215 billion-plus MSR portfolio in house. It also wants to be a major player in the subservicing arena and is building an origination platform to protect against a refi wave.

Not every mortgage company can issue unsecured notes at a decent price, but a handful of larger shops can, especially if they own a ton of servicing rights.

One chief concern: Warehouse borrowing covenants have been breached.

The production chief Two Harbors hired was not identified by name...

In trading Monday, Mr. Cooper's common neared a new 52-week high...

A bank spokeswoman noted that Arvest only sells "purchased" mortgage servicing rights...

SoFi posted a quarterly profit for 4Q23, but the nonbank lost $300.7 million for the full year ...

Thanks to a steady decline in mortgage rates during the last quarter of 2023, the bond market has been rallying of late, lifting MBS values.

MBS prices staged a nice turnaround in the fourth quarter but trading volume weakened in December. A stronger-than-anticipated jobs report in early January sent rates northward but not terribly.

Over the years, warehouse finance has been a good business for Texas Capital, but the pain suffered by its nonbank clients over the past year has affected the bank as well. Relief could come when the Fed starts cutting rates.