MSR

Some in the space say they've seen new players coming in but others disagreed during a panel at the Mortgage Bankers Association's Secondary and Capital Markets conference.

The Dallas-based lender will assume close to $1.1 billion of conventional mortgage servicing rights, roughly $600 million in tangible equity and $500 million in outstanding Home Point 5% senior notes.

The offering comes amid an ongoing wave of private and public MSR sales.

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.

Rate volatility stemming from the banking crisis temporarily disrupted trading, but a broad range of deals large and small have gone up for bid since then.

Non-depositories now dominate home lending, but many of these firms were untested until they had to grapple with the current rising rate environment. How they fare could significantly impact the rest of the mortgage market and, more specifically, the Government National Mortgage Association.

The company's recently purchased subsidiary, Blue Water Financial, will provide tools for asset pricing, transfer, due diligence and other tasks to ease secondary market trading functions.

"To talk about 95% of issuers by count being compliant without recognizing that a very large number of issuers hold few MSRs is disingenuous," one industry executive told the chairman of Whalen Global Advisors.

Such exchanges are neither easy nor cheap and the key to any effective transfer process is accurate loan file information, writes Paradatec's director of professional services.

At the Mortgage Bankers Association Secondary Conference this week, issuers noted their concern about rising delinquency levels, accusations of racial bias in lending, and whether regulators in Albany and Washington are preparing a new campaign against “abuses” in mortgage servicing, the chairman of Whalen Global Advisors writes.