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MSR

5 financial industry stories to watch — part 1

5 financial industry stories to watch — part 1

FinTech advancements, digital banking and lending, AI and machine learning are all the buzz in financial services and will likely remain a highlight for 2019 discussions. However, analysts across Situs companies are looking at asset behavior, balance sheet risk and economic indicators that impact the foundation of the financial services industry. Here are five areas our analysts and advisors are watching in 2019:

Fewer homeowners paid off mortgages early during past 12 months

Fewer homeowners paid off mortgages early during past 12 months

Residential mortgage prepayment rates dropped in 48 states and the District of Columbia between the 12-month period that ended July 31 and the 12-month period that ended October 31. Nationwide, the average 12-month prepayment rate fell from 10.8% to 10.2% – a decline of 60 basis points (bps) – between the ends of the two periods.

MSR portfolio hedging left asset values unchanged in Q3

MSR portfolio hedging left asset values unchanged in Q3

Risk management activities for 14 of the largest holders of residential mortgage servicing rights (MSR) held asset values flat for the third quarter of 2018, according to the MSR Industry Report released last week by MountainView Financial Solutions, a Situs company. The largest gain among the 14 companies was 3.6% and the largest loss was -5.6%.

MBA conference session spotlights MSR valuation best practices

MBA conference session spotlights MSR valuation best practices

With the rewards of investing in the residential mortgage servicing rights (MSR) asset come significant accounting and management challenges. Many of those challenges are based on how frequently the asset can change in value and the overall opaqueness of what’s causing the change in value.

Ginnie liquidity initiative discussion added to MSR webinar today

Ginnie liquidity initiative discussion added to MSR webinar today

An official with Ginnie Mae recently announced a new initiative that seeks to address concerns about the liquidity of nonbank issuers in Ginnie’s single-family mortgage-backed securities (MBS) program.

MSR portfolio hedging continues to produce positive results

MSR portfolio hedging continues to produce positive results

Risk management activities for 14 of the largest holders of residential mortgage servicing rights (MSR) produced an average net gain in asset value of 0.4% during the second quarter of 2018, according to the MSR Industry Report released last week by MountainView Financial Solutions, a Situs company. The largest gain among the 14 companies was 4.5%, and the largest loss was 6.8%.

What you missed in our August MSR webinar

What you missed in our August MSR webinar

Escrow custodial account earnings have a significant impact on mortgage servicing right (MSR) asset values, and – in contradiction to what many holders of the asset might think – mortgages of borrowers with low credit scores aren’t prepaying slower than loans to borrowers with higher credit scores.

Prices in the MSR market are strong — for pristine portfolios

Prices in the MSR market are strong — for pristine portfolios

“Strong” is an adjective frequently used to describe the prices paid for residential mortgage servicing rights (MSRs) in recent months. Beyond the glimmer, however, is the reality that only specific slices of overall portfolios are trading very well, and a lot of MSRs out there are not going to market, according to advisory firm MountainView Financial Solutions, a Situs company.

Largest holders of MSRs continue to manage risk effectively

Largest holders of MSRs continue to manage risk effectively

Risk management activities for 14 of the largest holders of residential mortgage servicing rights (MSR) produced an average net gain in asset value of 0.4% during the first quarter of 2018, according to the latest MSR Industry Report produced by MountainView Financial Solutions, a Situs company. The largest gain among the 14 companies was 4.6%, and the largest loss was -3.3%.


The MSR market is hot … yet continues to be filled with idiosyncrasies

The MSR market is hot … yet continues to be filled with idiosyncrasies

“Demand is high and values are up, so it’s a good time to sell,” could be one potential summary statement about the current state of the residential mortgage servicing rights (MSR) market. On the other side of the market, many buyers and holders of the MSR asset are saying, “yields are attractive and MSR financing is readily available, so it’s time to buy” or, “I need to keep those customer relationships, so I’m going to retain the servicing instead of releasing it.