Non-bank servicers are not exactly a new phenomenon, but would you be surprised to learn that in the late 1980s and early 1990s, non-depository mortgage bankers were major players in the servicing market?
That informational tidbit and many more are packed into a new white paper from the Mortgage Bankers Association (MBA) and PricewaterhouseCoopers covering the history of non-bank mortgage servicing, up through recent trends.
The new white paper, ‘The Changing Dynamics of the Mortgage Servicing Landscape,’ discusses how increasing servicing costs can impact the price that consumers pay at origination and highlights the trends that have led to non-bank servicers gaining market share in recent years.
‘Non-bank servicers are a critical component of the real estate finance industry, and their recent growth reflects a normal cyclical change in the marketplace,’ says David H. Stevens, president and CEO of the MBA, in a release. ‘This white paper will help educate stakeholders and policymakers about mortgage servicing in hopes that they will better understand the market dynamics as they make policy decisions and recommendations going forward.’
As revealed in the white paper, banks still hold the majority of the mortgage servicing assets in the U.S.; however, the five largest non-bank servicers have seen their market share grow significantly in recent years.
The white paper also explores how new mortgage regulations are impacting consumers in terms of cost.
To access the white paper, click here.