Carrington Mortgage Services has reported that it bought $62.3 billion in servicing from home loans held by more than 236,000 borrowers in the past year.
The addition of these mortgage servicing rights roughly doubled the Anaheim, California-based company's portfolio. In total, the company now holds $122.1 billion in MSRs, representing a total of 682,000 borrowers.
Carrington said it upsized its portfolio without having to engage in any merger and acquisition activity, proof of
"Through strategic MSR purchases, we have been able to accomplish measured growth during the past several years without the need for any platform acquisitions," said Andrew Taffet, chief investment officer, The Carrington Companies, in a press release.
The increased size of the portfolio brings CMS into the ranks of the top 25 servicers, according to the company.
It also represents notable growth in the company's exposure to servicing over the last dozen years. In 2010, Carrington had just $14.3 billion in mortgage servicing rights in its portfolio from 71,500 borrowers' loans.
Carrington also recently announced that it's using its large servicing portfolio to
Both servicing and second liens are two key counter-cyclical business lines mortgage lenders have been turning to offset the effect of higher year-over-year rates on their primary mortgage volumes.
Second liens are currently on track to grow 24% next year, while primary loans will likely experience a 57% decline, according to
