Nonbanks Gain More Share of GSE Servicing in First Quarter
Mike SP
Nonbanks Gain More Share of GSE Servicing in First Quarter
The nonbank share of servicing for single-family mortgage-backed securities for the government-sponsored enterprises hit 57.8% as of the end of March, up from a 57.0% share at the end of 2023, according to a new ranking and analysis by Inside The GSEs.
The dynamics seen among the top three servicers served as a microcosm for trends in the broader market. Chase Home Finance, the largest GSE servicer, posted a 1.3% decline in its portfolio during the first quarter.
And third-ranked Wells Fargo’s portfolio shrank by 4.9% as the bank pares down its servicing duties.
Meanwhile, Mr. Cooper Group, the largest nonbank GSE servicer and second-largest GSE servicer overall, increased its portfolio by 8.6% during the first quarter.
For more details, see the latest issue of Inside The GSEs.
Mike SP
Economists at Fannie Mae increased their originations forecast for 2024 even as interest rates on mortgages are expected to remain elevated.
“We have revised upward our expectation for both purchase and refinance mortgage origination volumes [in April compared with the forecast in March], due in particular to our more optimistic home price growth expectation and somewhat lower mortgage rate path, along with an upgraded expectation for home sales,” Fannie’s economics and strategic research group wrote Tuesday. “We now expect 2024 purchase volumes to total just under $1.4 trillion, representing a $31 billion upward revision from last month’s forecast and 14% growth from 2023.” ...
