The economic value of residential mortgage servicing rights – which have been sliding for two years now – appear to have stabilized, according to a research note from MIAC Analytics, New York.
The advisory firm believes that not only have values firmed up, but they've improved slightly, saying the 2010 book of business "is probably the best in a decade."
MIAC notes that, "The amount paid is based almost purely on supply and demand and has next to nothing to do with values."
However, large bulk servicing transactions are few and far between these days unless the government is a party to the sale. The Federal Deposit Insurance Corp. recently completed the sale of $23 billion in bulk servicing rights to MetLife Bank, and another firm.
The receivables belonged to AmTrust Bank of Cleveland, which failed ten months ago. (National Mortgage News broke the story on the sale last month. An official sale announcement should come in the next few weeks.)
It's expected that some time in the next few months roughly $30 billion in bulk MSRs will be auctioned off by the bankruptcy trustee for Taylor Bean & Whitaker.
