When interest rates began skyrocketing more than two years ago, mortgage companies faced a pivotal decision regarding a crucial part of their business: the servicing portfolio.

This period was a windfall for servicers. Rising rates typically slow down borrower prepayments, increase the fair value of mortgage servicing rights (MSRs), and enable companies to earn more interest on funds held in escrow accounts.

The dynamic has led to a repositioning of players in the market. Many independent mortgage banks opted to sell a substantial portion of their MSRs, aiming to free up cash and stay details ⇒

BusinessMediaguide.Com portal received this content from this noted web source: HousingWire.Com