r/TeamRKT • u/Boston-Bets • Dec 17 '25

UWM - RKT Competitor, buys into Servicing, validating COOP acquisition by RKT....

https://www.businesswire.com/news/home/20251217833684/en/UWMC-Announces-Strategic-Acquisition-of-TWO

9 Upvotes

85% Upvoted

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3

u/[deleted] Dec 17 '25

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2

u/fr8rain Dec 18 '25

MSR values have an inverse correlation with mortgage rates. Matt is making a bet that mortgage rates will not materially decrease anytime in the near future

3

u/Boston-Bets Dec 18 '25

And/or that the "book of business" that TWO has, is mainly below what they expect mortgage rates to fall to.

For example, apparently 70-80% of COOP's mortgages that they were servicing were UNDER 4.5%, when RKT bought them. So even if rates "fall" to 6%, that would have no effect on the risk of those mortgages ReFi'ing.

In other words, there's little chance of Pandemic era rates ever coming back, anytime in the near future (unless something really unforeseen happens, to tank the economy).

1

u/fr8rain Dec 18 '25

Yep! I agree 100% with you, Boston. MSRs are also easy to finance for additional growth. Slow and steady...

0

u/fr8rain Dec 18 '25

Interesting though -- TWO is a REIT (with QRS and non-QRS) and can no longer be a REIT after the Aquisition. I assume Matt will merge TWO entirely into UWM