Learning and evolving: Bank of America's Jeana Curro on the evolution of the Mortgage Servicing Rights industry

In addition to speaking at IMN's Mortgage Servicing Rights Spring conference, Bank of America's Jeana Curro delves into industry trends, the transformative impact of emerging technologies, and her personal journey into the Mortgage Servicing Rights space. Read on for Jeana's insights.

1. What are the most significant trends or challenges currently shaping the mortgage servicing rights market, and how do you see these evolving in the next few years?

Competition and consolidation. Lenders are working on thinner profit margins now in effort to be competitive and must have very strong recapture programs to protect in any rate rally. Borrowers are much more informed on who is offering the best rate, and typically don’t display the same loyalty to their lender that they once did. We think the advancement of AI and technology has only perpetuated these dynamics and should continue to do so in the near term. The MBS investor as a result has to manage a more negatively convex product, but that has also spurred product innovation (e.g. new specified pool stories and CMO structures)

How do you think technology and innovation are transforming the mortgage servicing rights space, and what opportunities does this create for professionals in the industry?

The mortgage lending industry has grown tremendously thanks to the advent of AI and focus on technology. Lenders are now much better able to identify and reach out to eligible borrowers. The underwriting and loan processing procedures have also been streamlined and are faster. Overall, lenders are closing more loans quicker and borrowers are better able to take advantage of rate opportunities.

What drew you to working in this space and what do you enjoy most in your daily role?

I have my undergraduate degrees in Mathematics and Psychology so I love that analyzing mortgage-backed securities is both quantitative and behavioral. I have been doing this role for over twenty years (!) and am grateful that that the industry is constantly changing. I’m learning new things every day. I also have the best team!