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.
Elevated buyback pressure from Fannie and Freddie is particularly acute for small, struggling lenders seeking to sell mortgage-servicing rights (MSRs).
GSE repurchase risk is rippling through the MSR market housingwire.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from housingwire.com Daily Mail and Mail on Sunday newspapers.
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.
Speculation that Wells Fargo is considering a huge bulk sale of MSRs may be a rumor that is all hat and no cattle. Or it could signal a future MSR-market stampede.
Today is World Breast Cancer Research Day, a global recognition of the life-changing research (past, present, and future) to end breast cancer. That would be nice. What is also nice, so far, is the lack of named storms in the Southeast. Lenders, and servicers, and of course homeowners, in the Southeast dread “hurricane season.” Back in May, NOAA's outlook for the 2022 Atlantic hurricane season (June 1 to November 30) called for “above normal” storm activity. But the prediction, like interest rate predictions, has so far been wrong, and it has been surprisingly quiet to date, thankfully. In the housing market, things are also quieting down somewhat as the summer season winds down. Or is it due to recession fears? Time will tell. Meanwhile, every week I receive questions about market dynamics and individual lender performance. How much did “X” produce last year? In which states? What is their product mix? What was their growth YoY? Where can I access this data? There are various dashboard products, but the latest is Gallus’ new data visualization tool that provides answers to such questions and much more, including multi-year trends for all market participants. (Available here, this week’s podcast is sponsored by Agile, the mortgage industry's MBS fintech. Bringing the mortgage capital markets into a new digital era. From lenders to dealers, Agile is the new way to quote MBS. Today’s has an interview with Megan Sinclair, millennial home buying expert, on current millennial sentiment and living trends.)
Mortgage Capital Trading (MCT) Deepens MSR Expertise with Hire of Azad Rafat massachusettsnewswire.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from massachusettsnewswire.com Daily Mail and Mail on Sunday newspapers.