Can nonbanks become significant players in the HELOC market and ride MBS execution to a new wave of dominance? Due diligence firms that facilitate such transactions hope so.
The servicing side of residential finance, in particular processing fees and MSR sales, has saved many a lender from the abyss during the correction of the past year. But it hasn’t been a complete joyride. Rising personnel costs and technology expenditures are a concern.
Commercial banks continue to look sideways at the residential lending business, wondering why they should be in it at all. Some are getting out while others are scaling back significantly.