Rocket Mortgage, a part of Detroit-headquartered Rocket Companies (NYSE: RKT), and Annaly Capital Management Inc. (NYSE: NLY), the world’s largest residential mortgage real estate investment trust, have entered into a subservicing agreement where Rocket will handle all servicing and recapture activities for a portion of the mortgage servicing rights (MSR) held by Annaly.
Annaly, which has nearly $75 billion in assets, has built a fully scaled MSR platform which holds servicing for approximately 608,000 loans, totaling $192 billion in unpaid principal balance and $2.8 billion in market value as of June 30. The company’s MSR portfolio consists of high-quality conventional loans with a weighted average FICO of 757 at origination.
Rocket Mortgage is expected to begin servicing loans for Annaly as early as December.
“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,” said Bill Banfield, chief business officer of Rocket Companies. “We are honored to be working with Annaly and look forward to providing their serviced clients the same exceptional experience that has made Rocket a perennial recipient of JD Power’s servicing award.”
“Annaly is pleased to enhance its mortgage servicing rights platform with our new relationship with Rocket,” added Steve Campbell, president and chief operating 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. We are excited to have access to the best-in-class experience that Rocket is known for, which continues to improve given their ongoing investments in technology.”
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