At the end of March, mortgage companies were servicing just shy of $9.5 trillion in home loans, a 4% decline from a year ago, and a sign that foreclosures and ‘cash-in’ refinancings are continuing to play a key role in reducing residential debt.According to figures compiled by National Mortgage News (NMN) and the Quarterly Data Report (QDR), mortgage debt outstanding in the U.S. (servicing rights) peaked at $10.1 trillion in 4Q09. Since then it’s been a steady slide as consumers default on their loans, removing those mortgages from the dockets of the nation’s servicing companies – especially larger players such as Bank of America, Wells Fargo & Co., and Chase.

NMN/QDR found that BofA and Wells continue to dominate the servicing landscape, controlling just over 40% of the housing receivables market.

At the end of March, BofA serviced $2.01 trillion in home mortgages, giving it a market share of 21.23%. Wells ranked a somewhat close second with $1.8 trillion in MSRs and a 19.09% share.

Chase was a distant third with $1.23 trillion, and a 13.02% share.

According to NMN, four of the nation’s top five servicers – Wells being the exception – saw their portfolios decline in the first quarter compared to 1Q10. However, Wells managed a meager 1% growth rate in MSRs.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.