Mortgage Servicing Rights (MSR) Valuation & Hedging

Whether you are getting your agency approvals, selling through co-issue, or actively growing your portfolio, MCT offers a suite of tools along with an experienced team to help you with all your mortgage servicing rights needs. Choose the combination of services to achieve your MSR risk management goals:

  • MSRlive! is a new MSR portfolio valuation software tool that supports your efforts to build, maintain, and optimize your servicing portfolio.
  • Portfolio Valuation Reports determine the value of your asset but also detail risk and exposure sensitivities.
  • Enhanced Retain-Release Extension for MCT’s Best Execution Analysis offers additional customizations for your specific servicing goals.
  • MSR Strategy Consulting is available for MSR Services clients along with a robust network of subservicers and MSR financing institutions.
  • Custom MSR Grids let MCT calculate MSR values based on your costs and key assumptions.
  • MSR Hedging & Brokerage strategies include setup, assistance with trade decisions, and in-depth risk/return analysis.

Discover the robust valuation, analysis, and forecasting power of MSRlive!, our new cloud-based software for mortgage servicing rights valuation. With MSRlive!, users can value their portfolio at 30 loans per second. Users can also analyze the effect of predictive market scenarios on their portfolio.

  • Portfolio Valuations – Value and analyze your portfolio at 30 loans per second.
  • Create Grid Pricing – Define your typical loans characteristics to generate a pricing grids in minutes.
  • Run Rate Shock Analysis – View the effect of market changes on your portfolio with a range of +/- 200 basis points.

Servicing Portfolio Valuation Reports

For those clients who do not desire the sophistication of our MSRlive! servicing model software but still need to determine the value of their MSR asset, MCT offers monthly, quarterly or annual portfolio valuations.

  • Precise analysis and opinion of value
  • Summary tables of major portfolio characteristics
  • Sensitivity charts for key risk factors

Enhanced Retain-Release Extension
for MCT’s Best Execution Analysis

Our newest offering leverages the power of the MSRlive! for any agency approved lender, even if you aren’t actively growing your MSR portfolio. The Extension augments our state of the art Best Ex. Analysis to provide retained released decisions that:

  • Are precisely calibrated to your internal costs and yield requirements.
  • Adjust cash impact for MSR financing transactions.
  • Adjust for the cash impact of a transaction by –
    • Reflecting tax advantages of retention vs. release.
    • Identifying breakeven point for cash for MSR transactions.
    • Showing actual gain/loss in cash from different retention strategies or decisions about individual loans.

MSR Strategy, Consulting, & Networking Services

Mortgage Service Rights (MSR) clients have access to one-on-one strategy consulting with MCT specialists and are offered a robust network of subservicers and MSR financing institutions.


  • MCT emphasizes education and training for all clients. Expanding capital markets knowledge leads to our mutual success.
  • Assistance navigating the process of agency approvals and growth through the stages of building an MSR portfolio.
  • Assistance identifying and evaluating sub-servicing options and strategy.
  • Training on what servicing is, what drives the value, how the value is calculated, and other principles.


  • Introduction to subservicers with special pricing and terms for MCT clients.
  • Introduction to banks lending on Mortgage Servicing Rights assets.

MSR Services: Latest News & Educational Articles


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

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.

Tax & Escrows: Calculation & Impact on Servicing Values | Servicing Insights Vol. 6

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 balance from the average of tax and insurance payments. One overlooked consideration that causes these averages to be misleading is that these […]

MCT Exchange September 2017 Recap

Every year, clients, vendors, and staff of MCT look forward to the Exchange for it’s contemporary style that sets it apart from other secondary market conferences. With it’s cutting-edge format, educational opportunities, and enjoyable networking venues, this year’s September 2017 Exchange was no exception.

Many lenders need specialized guidance to value servicing portfolios for maximum profitability and risk management. This new group will be key in supporting existing MCT clients as they grow to larger accounts.

Phil Laren
Director of MSR Services

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