Mortgage Servicing Rights in 2025: New White Paper

The U.S. mortgage industry has been at the epicenter of changing dynamics in the interest rate environment, economy, federal policy and the regulatory environment. In 2025, uncertainty and volatility are making it difficult for asset holders to determine mortgage servicing rights (MSR) strategies. 

“I think the industry is feeling a bit like a deer in headlights,” said Mark Garland, Managing Director, MSR Pricing & Analytics. “How do you manage assets? What’s happening with the regulatory environment?” 

SitusAMC's new white paper, “Mortgage Servicing Rights in 2025: Navigating Market Volatility,” reports on key trends driving the market for MSRs, such as:  

• how institutions are responding to interest rate and economic volatility; 
• dynamics between production and servicing;  
• trends in hedging, recapture, trading activity and consolidation; 
• and a few wild cards institutions must consider before making strategic portfolio moves. 

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.”   

Meanwhile, industry participants must interpret the implications for MSRs of the Trump Administration’s sweeping changes in the oversight landscape, affecting the Consumer Financial Protection Bureau (CFPB), Federal Housing Finance Agency (FHFA), as well as Fannie Mae and Freddie Mac. 

SitusAMC is a leader in the valuation, analytics and hedging of MSR, whole loans, and other hard-to-value assets. Our team of dedicated analysts marry key market and industry data, our own unparalleled time-series and point-in-time loan performance information analysis, as well as trade data from our brokerage team. Download our white paper, “Mortgage Servicing Rights in 2025: Navigating Market Volatility,” today. For more information, visit our website. Register for our upcoming monthly MSR webinar here.