Mortgage servicing rights (MSR) are an arrangement where loan originators sell mortgage loans and retain the administrative duties and tasks associated with the loans, as a revenue stream. This allows the financial institution to focus more resources on the business of origination and disbursing new mortgage loans. Corporate Central’s CUSO, QuantyPhi, has built a sophisticated valuation model that ensures accurate reporting of MSR assets on your credit union’s call report, considering the impact of changing interest rates on prepayment speeds and income.
To highlight the effectiveness of QuantyPhi’s MSR model and prove the benefits of viewing MSR valuations with an ALM and interest rate risk focus, a detailed case study was conducted. The case study is based on characteristics of actual credit union real estate loans sold portfolios and spans multiple years and significant changes in market interest rates.
Read the white paper: https://www.quantyphi.com/Documents/Whitepapers/MSR-Whitepaper
Greg Yoko, Business Development Executive
greg.yoko@corpcu.com
(414) 427-3614
