The nation’s top five servicers—Wells Fargo, Bank of America, Chase, CitiMortgage and Ally Financial—had a combined servicing market share of 55.6% at Sept. 30, a stunning loss of eight points in share over the past 12 months.
“This is hard to put in words, but a loss of this size is significant,” said Austin Tilghman, president and CEO of United Capital Markets, Denver.
Tilghman, whose firm advises mortgage firms on servicing strategies, told NMN, “This is a natural progression of servicing moving away from large banks to smaller mortgage banking firms and private capital.”
Of the top five, all saw their MSRs decline in 3Q (compared to a year ago) with the exception of Wells, which grew its business by 4%.
Among the largest players, B of A once again led the downward spiral, ending the quarter with $1.46 trillion of MSRs on its books, a 24% decline over the past 12 months. It has been a net seller of servicing for well over a year.
Meanwhile, Ally is in the throes of selling the MSRs of its Residential Capital Corp. mortgage affiliate to Ocwen Financial.