Nonbanks cement their dominance in agency servicer/seller market

New issuance of agency mortgage servicing pools is down sharply — $555 billion through the first six months of 2025 versus $1.1 trillion in the same period last year — and is reflective of a sluggish origination environment. That’s according to Recursion‘s Agency Mortgage Servicer/Seller Report for July 2025.

Prepayments were also down to $301 billion for the first half of 2025, compared to $546 billion for the first half of 2024, the report revealed.

Overall, unpaid principal balance (UPB) remains relatively flat year over year across all loan types. As of July 20025, UPB stood at $8.964 trillion compared to $8.951 trillion at the same time last year.

When comparing numbers for banks and nonbanks, the latter group continues to dominate agency servicing and originations — especially for loans pooled through Ginnie Mae. Across all agency servicing, the nonbank share of UPB as July was 72%, while banks held 28%. When looking only at Ginnie Mae pools, the nonbank share rose to nearly 89%.

As for new issuances during the first half the year, among the country’s top 25 servicers, nonbanks were responsible for $481 billion whereas banks posted $74 billion. Nonbanks had $235 billion in prepayments versus $65 billion for banks.

By UPB, the leading servicers as of July are Lakeview Loan Servicing with $738 billion, Mr. Cooper with $673 billion and Pennymac with $659 billion.

Among the top 25 servicers, eight were banks and 17 were nonbanks, reflecting the growing shift away from the mortgage business by banks.

The servicers with the highest delinquency rates were Lakeview at 18%, Freedom Mortgage at 15.5%, Pennymac at 10.8%, Carrington Mortgage Services at 6.5% and Newrez at 5.8%.

Carrington (10.6%) and Lakeview (9.8%) stood out with the highest year-to-date shares of loans that entered 30-day delinquency status.

As for sellers, United Wholesale Mortgage (UWM) captured 11.9% of all production with $66.2 billion through the first half of the year. UWM was followed by Pennymac ($61.6 billion) and Rocket Mortgage ($39.5 billion). The top three sellers are nonbanks and account for about 30% of all agency production.