MSR trading volume this year is on pace to meet or exceed last year’s robust mark, when some $1 trillion in MSRs exchanged hands then fueled by the spike in interest rates. The trading volume of MSRs so far this year is on pace to meet or exceed last year’s robust mark, when some $1 trillion in MSRs exchanged hands then fueled by the spike in interest rates.
Nonbanks leaning on MSR sales now face a supply-demand imbalance, which favors buyers and is expected to squeeze margins, especially for smaller players, regardless of whether they sell or retain servicing.