Research Outline

Mortgage Servicing


To obtain an in-depth analysis of the mortgage servicing space to include (1) an explanantion of the relationship between mortgage servicing and mortgage origination/lending; (2) where do 3rd party servicers fit in the mortgage value chain; (3) what number/percentage of mortgage originators contract with 3rd party servicers, and does this vary by bank size or for tech-enabled lenders like Rocket Mortgage; (4) competitive landscape of the space to include the top players with their market share (which will require market size for the industry); (5) how many 3rd party services are their nationwide; (6) what are MSRs (mortgage servicing rights), and is there a separate market for these, distinct from the mortgage loan market; (7) if MSRs are a separate market, who are the key players; (7) is there a liquid market in the space, and who are the typical investors; (8) an outline of any substantial changes in the space in the past few years, potentially including structural market or regulatory changes; and (9) notable trends in the space.

Early Findings

  • IBIS reports that the loan administration, check cashing & other services market size in the U.S. is $16 billion. Unfortunately, the majority of the report is behind a paywall and the portion of that attributable to loan administration only was not publicly available.
  • IBIS also reported that the loan administration, check cashing & other services industry was expected to decline by 9.7% in 2020 due to the pandemic, while average decline over the period from 2015 to 2020 was 2.5%. Projections for 2020 to 2025 were behind a paywall.
  • Technavio reports that the global loan servicing market is projected to grow by a CAGR of almost 12% through 2024, which translates to growth of $2.43 billion from 2019 to 2024.
  • As of February 2020, the largest commercial and multifamily mortgage servicers, based on volume, were "PNC Real Estate/Midland Loan Services, with $702 billion in master and primary servicing, followed by Wells Fargo Bank, N.A. ($700 billion), KeyBank National Association ($306 billion), Berkadia Commercial Mortgage LLC ($280 billion), and CBRE Loan Services ($228 billion)."

Summary of Findings

  • Due to the large number of topics requiring research, we were only able to touch three specific areas of interest in the initial research. These were market size and growth, percent of mortgage originators utilizing 3rd party services, and the largest 3rd party mortgage service providers.
  • Our initial search did not uncover any information on the number or percent of mortgage originators that use 3rd party services for servicing loans. However, our search time was limited and it is possible further research may result in additional findings.
  • The data found on the largest mortgage servicing providers did not distinguish between providers that are also originators and 3rd party firms.
  • With additional time, we expect we could back into a global market size for the loan servicing industry and then possibly determine the U.S. or North American portion of it in order to estimate the market size.
  • For several proposals below, we were unable to determine in the initial hour of research whether there would be publicly available data to answer the question. Therefore, it is possible that thee data will not be found and alternative helpful data will be provided instead.