Although most of the nation’s megabanks have been purposely reducing their imprint in the residential servicing business, their market share losses are beginning to pile up, according to new figures compiled by ASR sister publication National Mortgage News.

The nation’s top five servicers — Wells Fargo, Bank of America, Chase, CitiMortgage and Ally Financial — had a combined servicing market share of 55.6% at Sept. 30, a stunning loss of eight points in share over the past 12 months.

“This is hard to put in words, but a loss of this size is significant,” said Austin Tilghman, president and CEO of United Capital Markets, Denver.

Tilghman, whose firm advises mortgage firms on servicing strategies, told NMN, “This is a natural progression of servicing moving away from large banks to smaller mortgage banking firms and private capital.”

Of the top five, all saw their MSRs decline in 3Q (compared to a year ago) with the exception of Wells, which grew its business by 4%.

Among the largest players, B of A once again led the downward spiral, ending the quarter with $1.46 trillion of MSRs on its books, a 24% decline over the past 12 months. It has been a net seller of servicing for well over a year.

Meanwhile, Ally is in the throes of selling the MSRs of its Residential Capital Corp. mortgage affiliate to Ocwen Financial.

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