Thanks to rising interest rates in the second half of 2017, sales of mortgage servicing rights boomed last year and, the way things stand today, 2018 could bring more of the same.
“Conditions are great right now,” said Mark Garland, executive vice president of MountainView Servicing Solutions, Denver. “We’re at the point where the rate situation has created certainty in the market.” Garland and other dealmakers point to not only higher rates but lower anticipated loan production and MSR values that are firming up.
“We discouraged our clients from selling in the fourth quarter and now it’s paying off,” said David Fleig, president of MorVest Capital, Houston. “Companies that created servicing rights and retained the product are going to enjoy this market very much.”
At yearend, the yield on the benchmark 10-year Treasury was at 2.47. Today, it’s almost 40 basis points higher. In August, the reading was much lower at 2.06 percent. For the full story, see Inside Mortgage Finance, now available online.