Even in this bull MSR market, there are headwinds to keep an eye on going forward: bank MSR portfolios are shrinking, IMBs are on a treadmill and there are growing concerns about future trading volumes.
A couple small deals with some unusual regional concentration also are in the market and one broker says many billions of dollars more are in the pipeline.
The package of Fannie Mae, Freddie Mac and Ginnie Mae MSRs has some unusual geographic concentrations and a nearly 2.63% delinquency rate, including foreclosures.