SitusAMC, the provider of strategic outsourcing, advisory, talent, and technology solutions to the real estate finance industry, has published a new white paper titled “Mortgage Servicing Rights in 2025: Navigating Market Volatility.”
The company described the white paper in a press release as an examination of the complexities facing asset holders in the mortgage servicing rights (MSR) market during the current economic uncertainty. The firm values approximately $8 trillion in MSRs each month and supported more than $74.8 billion of MSR transactions in 2024, representing more than 43 transactions.
The white paper also explores key topics such as the influence of interest rate changes on mortgage origination and servicing profitability, risk mitigation strategies including hedging and recapture in response to shifting interest rate environments, market trends in trading activity and consolidation within the MSR space, and other critical factors impacting the future of MSRs, including Government Sponsored Enterprise (GSE) reform and housing affordability concerns.
“The industry is feeling a bit like a deer in headlights. How do you manage assets? What’s happening with the regulatory environment?” SitusAMC Managing Director of MSR Pricing & Analytics Mark Garland said in the release.
Our latest white paper further delves into the significant trends shaping the MSR market, including:
- How institutions are navigating interest rates and economic volatility.
- The interplay between production and servicing.
- Trends in hedging, recapture, trading activity, and consolidation.
- Key factors institutions need to weigh before making strategic portfolio decisions.
The million-dollar question is where interest rates and mortgage origination volume will land over the next 12 to 18 months, Garland added.
“Volume is everything,” he said. “Volume is going be the issue that will keep people in the business or drive them out.”
For institutions seeking expert guidance in navigating the complexities of the MSR market and maximizing value in a challenging economic climate, SitusAMC offers a comprehensive suite of solutions. From valuation and transaction execution to regulatory compliance and operational support, SitusAMC provides customized strategies to help clients achieve stability and success in the ever-changing MSR environment.