SitusAMC Releases White Paper on Challenges and Opportunities in the Mortgage Servicing Rights (MSRs) Market Amid Economic Uncertainty

NEW YORK, April 30, 2025 /PRNewswire/ -- SitusAMC, the leading 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," examining the complexities facing asset holders in the MSR market amidst the current economic uncertainty. SitusAMC is a leading provider of valuation, hedging and transaction advisory services for MSRs. 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.

ABOUT THE WHITE PAPER

SitusAMC MSR white paper 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.

In the face of uncertainty and volatility in the industry, Mark Garland, Managing Director of MSR Pricing & Analytics, expressed, "The industry is feeling a bit like a deer in headlights. How do you manage assets? What's happening with the regulatory environment?"

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 said.

"Volume is everything," he noted. "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.

The white paper "Mortgage Servicing Rights in 2025: Navigating Market Volatility" is available for a free download here.

JOIN OUR MSR WEBINAR

In addition to the white paper, SitusAMC will host its MSR Monthly Asset Snapshot on May 14, 2025, at 1 PM ET to provide critical data and expert commentary. Register here to attend.

About SitusAMC

SitusAMC is a leading independent provider of strategic outsourcing, advisory, talent, and technology solutions to the commercial and residential real estate finance industries. The company helps clients identify and capture opportunities in their real estate businesses through industry-leading solutions that drive operational efficiency, increase business effectiveness, and improve market agility across the entire lifecycle of their global real estate activity. For more information visit www.SitusAMC.com

Press Contact:
Andy Garrett
Head of Marketing & Communications
[email protected]

SOURCE SitusAMC