Incenter Mortgage Advisors Trades $110 Billion in MSRs in January, 2022

Tom Piercy

Feb 1, 2022

Record-Breaking Volume Is Potential Secondary Market Bellwether, Says Managing Director Tom Piercy

Incenter Mortgage Advisors (IMA) traded $110 billion in mortgage servicing rights (MSRs) for clients in January, 2022—a monthly record for the company, and a potential bellwether for the secondary mortgage market, according to Tom Piercy, IMA’s Managing Director.


“Barring unexpected global events that impact domestic policies, we are projecting strong trading volumes for the industry into Q2. We’re seeing the ripple effects of a confluence of factors, starting with two years of record-breaking mortgage originations in a low-interest-rate environment,” he said.


“Banks have been stockpiling mortgage assets for some time now. With the trending rise in interest rates and mortgage par rates, they see an opportunity to move them off their balance sheets and increase cashflow,” he added.


Banks, non-banks, REITs and private equity investors are all participating in the MSR marketplace as buyers and sellers.


“With higher interest rates also lowering mortgage prepayment risks, buyers are assigning higher valuations to these assets,” he noted.


Mr. Piercy can be reached at tpiercy@incenterms.com