Higher Rates May Renew Banks’ Interest in Mortgage Servicing Rights

Higher Rates May Renew Banks’ Interest in Mortgage Servicing Rights

Some banks are set to get a fourth-quarter earnings boost from their MSR portfolios, thanks to a sudden spike in yields on Treasury bonds. Add to that the prospect of further rate hikes and the potential dismantling of Basel III, and more banks could be encouraged to re-enter the servicing business.