Rocket will manage a portion of Annaly Capital's mortgage servicing rights portfolio
Mortgage giant Rocket Mortgage and Annaly Capital Management, one of the US’s largest REITs, have entered into a new subservicing agreement.
Under this agreement, Rocket will manage the servicing for Annaly's portfolio, which covers around 608,000 loans with a total unpaid principal balance of $192 billion. These mortgages primarily consist of high-quality conventional loans, with an average FICO score of 757 at origination. Annaly holds approximately $75 billion in assets across various housing finance strategies.
"Annaly is pleased to enhance its mortgage servicing rights platform with our new relationship with Rocket," said Steve Campbell, president and chief operations officer of Annaly. "We are proud to have constructed one of the most durable and high-quality portfolios of MSR in the market and this partnership will allow us to benefit from Rocket's industry-leading servicing capabilities and retention rates.”
Rocket Mortgage, which has consistently ranked highest in customer satisfaction for mortgage servicing according to J.D. Power, will officially begin managing these loans by December 2024.
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This new deal will further expand Rocket’s already massive servicing portfolio, which stood at $534.6 billion in unpaid balances as of the second quarter of 2024. The company’s servicing portfolio includes 2.6 million loans and generates approximately $1.4 billion in annual fees.
"Rocket is committed to the entire homeownership experience from budgeting and credit-building, to home search, financing and servicing. We truly believe in building relationships with our clients that last a lifetime – whether through new mortgages or servicing loans," Rocket chief business officer Bill Banfield said in a media release.
The tie-up comes at a time when Rocket is actively expanding its mortgage servicing platform, including the recent acquisition of $20.8 billion in mortgage servicing rights. Additionally, Rocket has rolled out a new program called “Welcome Home RateBreak,” which offers temporary interest rate reductions for homeowners during the first two years of their mortgage.
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