Rithm has once again used its servicing rights in a capital markets deal. Why haven’t other MSR owners followed its lead?

On some recently issued expanded-credit MBS, servicing fees have been as low as 5 basis points. S&P and some other rating services review deals applying assumptions for higher servicing fees.

Shellpoint handled servicing on 26.6% of the dollar volume of non-agency MBS issued during the fourth quarter.

Loans in Ginnie Mae MBS accounted for 17.7% of total single-family mortgage servicing outstanding as of the end of 2024, up from a 17.0% share at the end of 2023. Nonbanks continue to gain share.

With bids for MSRs remaining strong, Guild Mortgage sharply reduced the share of its mortgages originated with servicing retained in 2024.

Delinquencies on FHA mortgages are rising much more quickly than delinquencies on conventional mortgages, though large FHA servicers don’t appear to be too concerned. Meanwhile, VA foreclosures resumed in January after a moratorium ended.

FHA extends foreclosure moratorium tied to LA wildfires; HUD rescinds Affirmatively Furthering Fair Housing rule; CSBS seeks Ginnie servicing reforms; RHS delays servicing changes; Rate offers complimentary, temporary insurance for first responders; bill in Senate would speed mortgage processing at Bureau of Indian Affairs.

Retaining servicing rights on production can provide originators a profit opportunity, if they are able to manage the business effectively.

Four companies among the top 10 primary servicers upped their portfolios by double digits on a percentage basis in 2024 — all nonbanks. (Includes three data tables.)

To increase already substantial market shares, nonbank mortgage companies are investing in proprietary technology for originations and servicing.