Current Trends in Mortgage M&A Deals

The mortgage industry's mergers and acquisitions (M&A) activity is beginning to pick up, albeit moderately, after a slow start in 2024. While larger lenders typically acquire smaller ones to gain market share, there is a noticeable shift toward companies with significant liquidity and robust servicing books. These financial resources allow them to counterbalance less profitable areas of their operations while gearing up for an anticipated refinancing boom. For instance, Mr. Cooper's acquisition of Flagstar's mortgage operations highlights this trend, as they now lead the market, indicating the competitive landscape shifting towards those with strong servicing capabilities.