All other things being equal, Basel III capital requirements discourage banks from holding mortgage servicing rights. But all other things are not always equal.

"A handful" of banks with room in their Tier 1 capital ratios have started to buy servicing, attracted by the yields, the potential to cross-sell products to the borrowers and other factors, a servicing broker says.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.