Rocket sells nearly $20 billion of MSR to JPMorgan Chase

addition rocket mortgage Added to list of companies selling Mortgage Servicing Rights (MSR) in a difficult business environment.

The Detroit, Michigan-based financier has sold approximately $20 billion in MSRs to: JP Morgan Chase The company’s unpaid principal balance reached $524.8 billion as of March 31, compared with $535 billion at the end of December. Securities and Exchange Commission (SEC) filings.

“In April, Rocket Mortgage made a small MSR sale, representing about 4% of the company’s maintenance book,” a company spokesperson said in a statement to Housingwire. A spokeswoman did not provide additional details about the type or features of the loan.

Could outperform JPMorgan Chase wells fargo The largest U.S. mortgage servicer declined to comment last month.until acquisition First Republic Bank With Rocket’s acquisition of MSRs, JPMorgan Chase acquired about $126 billion worth of MSRs in the past two months.

Several borrowers took to social media this week to comment on changes to JPMorgan Chase’s servicing that will take effect June 1.

Rocket’s vice president of capital markets Bill Banfield said in an interview with Housingwire in early May that Rocket retained “nearly all” of its loans to service borrowers.

“My team has bought billions of dollars in MSR over the last few years. We’ve sold billions of dollars,” Banfield said. “We look at what we call the lifetime value of our clients. And for other categories with lower lifetime value, let others serve you.”

The Rocket deal follows billions of dollars in MSRs sold on the secondary market this year.

wells fargo recently auctioned an MSR portfolio worth about $50 billion in connection with plans to exit telecom channels and slash its services portfolio. Cooper The deal was won, a person familiar with the matter told Housingwire.

In addition, Cooper, who had $853 billion in UPB assets as of the end of March, invested in Home Point’s $84 billion services portfolio as part of a $324 million cash purchase of the struggling company. will be inherited. This transaction will ultimately result in the seller going out of business.

Despite the sale of MSR, Rocket executives suggested buying the services portfolio in a conference call with analysts weeks ago.

“It could be the MSR portfolio that is interesting,” Rocket CEO Jay Farner told analysts. “And as you know, we are active in that space.

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