RoundPoint Mortgage Servicing Corp. reports that its mortgage servicing rights (MSR) purchases via co-issue grew by 257% in 2014, on a year-over-year basis, and that it expects similar growth this year.
The company began building its co-issue desk in 2013 and began acquiring MSRs in mid-2013 in order to capitalize on the market opportunity presented by the historically low interest rate environment and attractive returns on servicing rights.
‘We are very proud of what we have accomplished over the past few years, but our growth last year is a real source of satisfaction for us,’ says Dave Worrell, president of RoundPoint Mortgage Servicing, in a release. ‘Not only are we building our portfolio and servicing it effectively and profitably, but we're also partnering with some great originators. I'm very proud of what we've been able to do together and look forward to continued growth.’
RoundPoint built its co-issue conduit program specifically to meet the needs of mid-tier lenders, many of which had not sold their production to the agencies in the past. Today, the company claims to operate one of the most active flow co-issue conduit programs in the industry, serving all three agencies with a one-stop shop for co-issue execution.
‘One of the keys to making this kind of a program work involves having a highly efficient transition and boarding process,’ explains Craig Freel, senior vice president of portfolio management for RoundPoint. ‘You want to have a seamless borrower experience in order to maximize customer satisfaction. But you also need to have a program that efficiently moves borrowers into the servicing portfolio so lenders can receive prompt payment to fuel the continued growth of their businesses.’
In addition to the growth in MSR acquisitions, the firm's subservicing business also grew in 2014, the company reports.