Who keeps the borrower? A deep dive into servicer retention

"Data from ICE Mortgage Technology shared with HousingWire offers a deep dive into servicers' performance at keeping a borrower in their books after a refinance transaction. It shows that, on average, servicers have retained about 30% of borrowers since the second quarter of 2010. Servicer retention, however, varies with market cycles. And, in the current landscape, competition is expected to intensify as Rocket Companies agreed to acquire Redfin and Mr. Cooper Group, and Bayview Asset Management has proposed a deal for Guild Mortgage."

"At the same time, a recent ban on abusive trigger leads signed into law by President Trump in September is expected to give servicers and lenders an additional edge by allowing them to contact current customers directly. The rule coincides with mortgage rates falling to their lowest levels in nearly a year, spurring fresh refinance activity. Beyond market conditions, structural characteristics such as product type, loan vintage, servicer profile and investor backing also shape retention outcomes, according to ICE."

ICE Mortgage Technology data shows servicers have retained about 30% of borrowers on average since Q2 2010. Retention fluctuates with market cycles and is influenced by product type, loan vintage, servicer profile and investor backing. Recent industry M&A activity, including deals involving Rocket Companies and proposed transactions by Bayview Asset Management, is intensifying competition. A ban on abusive trigger leads signed into law in September allows servicers and lenders to contact current customers directly, while mortgage rates falling to their lowest levels in nearly a year are spurring refinance activity. Nonbank servicers outperform banks, and FHA/VA loans led retention in Q2 2025.

Read at www.housingwire.com