Current Trends in Mortgage Notes: What Sellers and Buyers Are Seeing in 2025

[Victoria OHare]

Hi BP community,

I wanted to start a discussion around the current trends in the mortgage note market. Some questions to consider:

• How have yields and pricing for performing notes changed recently?

• Are certain types of notes (seasoned vs. new, first vs. second position) more in demand?

• How are investor preferences shifting in 2025 for residential vs. commercial notes?

• Are note sellers seeing faster transactions or more competition in the market?

Would love to hear from both buyers and sellers about what you’re noticing. What trends are you seeing, and how is it affecting your strategies this year?

[Chris Seveney]

Quote from @Victoria OHare:

Hi BP community,

I wanted to start a discussion around the current trends in the mortgage note market. Some questions to consider:

• How have yields and pricing for performing notes changed recently?

• Are certain types of notes (seasoned vs. new, first vs. second position) more in demand?

• How are investor preferences shifting in 2025 for residential vs. commercial notes?

• Are note sellers seeing faster transactions or more competition in the market?

Would love to hear from both buyers and sellers about what you’re noticing. What trends are you seeing, and how is it affecting your strategies this year?

 1. Yields for performing loans have remained consistent since I started nearly 10 years ago. Non performing loans pricing has increased significantly (especially during covid) due to lower supply. Those yields have been pinched.

2. There is plenty of notes to go around for everyone, I have seen a lot less seconds in the market the past few years, but still plenty of firsts that are newly originated and have seasoning,.

3. I have primarily stuck to loans secured by residential single family - we do NPL's and less competition in that space than in commercila loans.

4. We see less competition, most who claim to buy notes actually are more window shoppers, so we have seen a lot of people leave the space especially recently because pricing on NPLs has increased, and margins are tighter so having great management makes or breaks the deals.

Hope this helps. Always enjoy chatting about notes