In this issue of Servicing Insights, we will describe our methodology of determining MSR values and quantifying and monitoring MSR risk. Our approach to modeling the different market interest rates is to statistically model a set of structural relationships between the interest rates, as well as other variables which cause them to change.
Join webinar to learn how to determine which MSRs to sell, how to evaluate bids you receive, and tips for negotiating a contract. Topics will also include expected challenges, purchase terms, and timing of the sale.
SAN DIEGO, Calif., Oct. 25, 2018 – MCT announced the upcoming launch of MSRlive!, a powerful web-based platform designed to effectively support lenders’ efforts to build, maintain and optimize their servicing portfolios.
Explore why hedging MSRs is practiced and what significant risks and costs can be accrued by not hedging MSRs. By busting the common myths and bringing this complex topic down to earth, we hope to equip the reader with the confidence needed to take the first step for their own business. Use the Hedging Barometer tool to know if you should hedge MSRs and when is the best time to begin.
Oversimplifying escrow calculations in servicing valuations can cause buyers and sellers of servicing to underestimate or overestimate their escrow balances. This happens because the traditional method of valuation takes the “average” monthly escrow...
Servicing Insights Vol. 5 will explore how to tackle the uncertainty of interest rates which lead to uncertainty about the future values of your asset. Utilizing examples of both horse race and Superbowl betting strategies to review the concept of how to use averages to compute a price for your uncertain assets.
In Servicing Insights Vol. 4, we will focus on finding what is the appropriate discounting methodology. This covers the basics of cash flow return analysis and reviewing static vs. dynamic yield. Learn detailed aspects of servicing valuation & modeling for experienced mortgage bankers.
Predicting prepayments is arguably the most difficult aspect of modeling the value of servicing, but there are a few tactics and best practices we recommend. Just like the channel 5 weatherman or the careful calculations of a rocket scientist, you can have a wealth of...
How is the expected late fee income determined? What is the importance of late fee revenue in servicing valuation? What does it take to strategically balance mortgage rights servicing costs with projected late fee revenue to drive maximum profitability? The myriad of...
Navigating foreclosure costs in servicing valuation can be complicated when you have several moving parts and diverse models to optimize for your business. Critically weighing the risks and costs of delinquencies requires careful diligence since there is opportunity...