While several top buyers of bulk MSR focused on high-coupon servicing from which they can harvest refinance business, the first quarter’s top buyer was mostly interested in prepay-protected lower-rate MSR. (Includes three data tables.)

Demand from borrowers increases when mortgage rates fall below 6.5%, according to Owen Lee, CEO of Success Mortgage Partners. Due to policies from the Trump administration, it’s unclear whether rates will decline to that level in the near term.

In a seasonal trend seen each of the past five years, the delinquency rate declined on securitized government-sponsored enterprise loans, FHA mortgages and Department of Veterans Affairs home loans. (Includes data table.)