The Competitive Edge: In-House Mortgage Servicing for Credit Unions

When interest rates rise, credit union members are less likely to refinance their mortgages at higher rates, which can increase the value of mortgage servicing rights (MSRs). Credit unions can retain the servicing of loans sold on the secondary market to enhance revenue. The 2024 Mortgage Bankers Association’s Servicing Solutions Conference & Expo reported that 19% more companies that retained servicing revenues were profitable than those that were not. Keeping servicing in-house offers numerous benefits, including enhanced borrower experience, operational control, and data security. This approach strengthens credit unions' financial health and fosters more robust relationships with members. The Benefits of In-House ServicingServicing loans in-house can provide a significant competitive ed...

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