@TheBrazenSeeker $COOP current recapture rates are artificially high due to the repressed environment, historically they have been much lower.
$RKT is paying a big premium for $COOP’s MSR residuals, so the write-off of unamortized MSR value will be a material offset to gain on sale income. If $RKT thought rates were going to collapse and drive a refi boom, why would it be giving away 25%+ of its equity to buy a mortgage servicer at a peak multiple at cyclically low CPR levels?
That said, Dan Gilbert is a lot smarter and richer than me. In this case, though, I think he’s smart for using his rich currency to buy a large hedge in the event that rates may stay higher for longer…