The outstanding dollar amount of subprime mortgage debt fell 10% in the second quarter to $374.8 billion as these nonconventional loans continue to “disappear” from servicing portfolios due to foreclosure and, in some cases, refinancings into prime loans.

According to exclusive survey figures compiled by ASR sister publication National Mortgage News and the Quarterly Data Report, the only subprime servicers growing their A- to D portfolios are firms specializing in high-touch mortgages that others are desperately trying to unload.

Ocwen Financial, Atlanta, for example, grew its subprime MSRs to $96.5 billion at midyear, a 72% spike from a year ago. But all of the company’s growth has come in the form of nonprime MSRs from firms exiting the space.

Of the 17 firms reporting subprime MSR figures to NMN/QDR, 12 showed a decline in their receivables portfolios year over year.

Subprime debt in the U.S. peaked at just over $1 trillion in late 2007, according to research by MortgageStats.com.

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.