MSR Assumptions Q2 2020
This is a timely announcement from MCT’s MSR Services division to summarize how the second quarter of 2020 has changed MSR valuation assumptions.
This is a follow-up to our MSR Assumptions Q1 2020 released in April.
Fill out the form to download MSR Assumptions Q2 2020.
About the Memo:
With the economy three months into the COVID crisis, the impact on servicing continues in several areas:
- Modeling and projection of mortgage bond interest rates given the fed interventions
- Modeling of delinquencies related to forbearance
- Modeling of the primary secondary spread and the aggregator response to the forbearance risk
- Trading of bulk MSR packages during this crisis
Read the memo to learn how these assumptions have changed and how it affects MSR valuations.
Download our memo today to learn more about the MSR market in Q2 2020.
“With the fed intervention, all treasury and mortgage rates have been driven lower. But volatility has slowed down, and, importantly, the mortgage treasury spread has come more in line.”
– Phil Laren, Director of MSR Services writing in MSR Assumptions Q2 2020
About the Author:
Phil Laren, Director of MSR Services at MCT
MCT’s mortgage servicing software, MSRLive!, was created by industry veteran Phil Laren.
Mr. Laren has more than 30 years experience in Capital Markets, predominantly in servicing. He is experienced in all aspects of servicing, modeling, pricing, trading, negotiating, hedging, risk analysis, accounting analysis and operations. He is also very experienced building teams and managing traders & analysts.
Mr. Laren holds Advanced degrees in statistics and econometrics.