Investors are increasingly interested in acquiring mortgage servicing rights (MSRs), driven by expectations for borrower recapture when mortgage rates decline. Notable transactions include Movement Mortgage and Sierra Pacific Mortgage, each selling substantial MSR packages. With high demand and elevated pricing, sellers are capitalizing on current market conditions. Executives highlight that selling MSRs can provide significant financial benefits to companies, especially given the attractive servicing release premiums. Reports indicate that lenders need to retain only a fraction of servicing to maintain stable income, further encouraging MSR sales at present.
Investors are eager to acquire mortgage servicing rights (MSRs) to prepare for borrower recapture once rates fall, thus aiming to build a high-yield portfolio.
The current demand for mortgage servicing rights is enormous, with multiples at 25-year highs, making it an ideal time for lenders to sell.
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