The year ahead for the mortgage-servicing rights market is shaping up to be a lucrative play for investors, lenders and others looking to purchase MSR assets. 

Independent mortgage banks (IMBs) leaning on MSR sales, however, now face a supply-demand imbalance, market observers say. That imbalance favors buyers and is expected to be a drag on MSR pricing that threatens to squeeze margins for already struggling IMBs — particularly the smaller players, regardless of whether they sell or retain servicing.

Driving home the concern over MSR pricing declines is a recent advisory bulletin issued by the Federal Housing details ⇒