MCT Whitepapers To Download

Latest Whitepapers Covering Capital Markets Topics

MCT creates new whitepapers for educating our clients, partners, and friends. They offer insights into our view of capital markets and mortgage hedging services. Dive into this knowledgebase to improve your understanding of complex topics explained by our industry experts.

ASE Model: An Alternate View of Value and Risk - Part 2 – Servicing Insights Vol. 9

As a follow up to ASE Part 1, Servicing Insights Vol. 9 explains why MCT utilizes the more dynamic “Aggregated Structural Equations (ASE)” methodology rather than a “rate path” (OAS) methodology to value each MSR asset.


Release Date: April 9, 2019
Writer: Phil Laren, Director of MSR Services at MCT

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Aggregated Structural Equations (ASE) Model – Servicing Insights Vol. 8

Gain an insiders look of how MCT’s Aggregated Structural Equations (ASE) model perceives the relationships between different market interest rates, other impactful variables, and why we believe MCT’s approach is more robust than other models.


Release Date: March 19, 2019
Writer: Phil Laren, Director of MSR Services at MCT

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Economic and MBS Outlook 2019 Whitepaper

Bill Berliner utilizes illustrative charts to discuss the impact of moderating economic growth on interest rates, the mobility of lending volumes, and trends that may influence the mortgage and housing markets. Explore the answers to important secondary market questions for 2019.


Release Date: February 4, 2019
Writer: Bill Berliner, Director of Analytics at MCT

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What Caused the Lender Profit Margin Compression?

Bill Berliner uses MCT client and market data to narrate the steps leading to shrinking margins in 2018 and what may be in store for the future of 2019. This explorative analysis contextualize the top level trends that lenders have been experiencing all year.


Release Date: August 14, 2018
Writer: Bill Berliner, Director of Analytics at MCT

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How to Manage Long-Term Interest Rate Locks

Gain several strategies MCT uses to hedge mortgage pipelines of long-term locks. These recommendations are designed to optimally offset interest rate exposure while minimizing ‘basis risk’ and hedging costs based on market conditions or client’s preferences.


Release Date: June 28, 2018
Writer: Bill Berliner, Director of Analytics at MCT

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Intro to Hedging a MSR Portfolio – Servicing Insights Vol. 7

Decide if you are ready for hedging your MSR portfolio with this discovery tool. This whitepaper will also discuss how you can view servicing as an asset, common myths about hedging MSRs, and the best time to start. 


Release Date: April 9, 2018
Writer: Phil Laren, Director of MSR Services at MCT

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Tax & Escrows: Calculation & Impact – Servicing Insights Vol. 6

Learn what escrow accounts are, why they’re important to servicing, how to calculate accurately, determine the appropriate earnings credit, and preventing underestimating or overestimating your escrow balances.


Release Date: February 2, 2018
Writer: Phil Laren, Director of MSR Services at MCT

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Yield and Arbitrage Theory – Servicing Insights Vol. 5

Learn the basics of arbitrage theory and how it serves as an important justification for OAS. A continuation of our discussion of static vs dynamic returns and deciding the appropriate yields to use in valuing cash flows.


Release Date: June 14, 2017
Writer: Phil Laren, Director of MSR Services at MCT

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Appropriate Discounting Methodology – Servicing Insights Vol. 4

For this issue, we begin a three-part discussion of static vs dynamic returns to convert a stream of cash flows into a price. Discusses issues such as delinquencies, prepayments, risks, and the impact on the price of servicing.


Release Date: April 18, 2017
Writer: Phil Laren, Director of MSR Services at MCT

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Prepayments in Servicing Valuation – Servicing Insights Vol. 3

Take a logical and consistent approach to analyzing the factors that affect prepayments. Learn to follow trends to forecast prepayments from borrowers as well as the immeasurable variables when forecasting prepayments.


Release Date: November 21, 2016
Writer: Phil Laren, Director of MSR Services at MCT

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Late Fee Revenue in Servicing Valuation – Servicing Insights Vol. 2

Learn how late fee income projections can drive profitability in your servicing and how these complex aspects can place even a professional mortgage banker in the divergent fork of prospect and prudence.


Release Date: November 17, 2016
Writer: Phil Laren, Director of MSR Services at MCT

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Foreclosure Costs in Servicing Valuation – Servicing Insights Vol. 1

Navigating foreclosure costs in servicing valuation can be complicated when you have several moving parts and diverse models to optimize for your business. This whitepaper will teach readers to confidently assess delinquency and foreclosure costs.


Release Date: November 15, 2016
Writer: Phil Laren, Director of MSR Services at MCT

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