Not all warehouse lenders have jumped into the MSR-finance pool, but that could change over time.

On the surface, the yield looks expensive for the issuer but in a rising interest rate environment, maybe it’s not.

Servicing outstanding on 1-4 family mortgages increased by an estimated 0.8% during the third quarter. Ginnie servicing grew at more than twice that pace, fueled by refinance originations. (Includes two data tables.)