The Mortgage Servicing Rights Valuation (MSR valuation) process is an integral step in determining the overall financial success of a financial institution’s mortgage operations.
By offering a very personalized mortgage servicing rights valuation service, McQueen Financial will help your financial institution meet regulatory requirements as well as make informed financial decisions.
As a Mortgage Servicing Rights advisor, our MSR valuation model is a discounted cash flow model using risk-tranches, based on prepayment speed expectations. The MSR are pooled into homogenous coupon and product pools, known as risk-tranches, and value based on their seasoning and expected remaining lives. We then perform a present value analysis of the future cash flows for each tranche, considering both the ancillary income from the escrowed funds and current levels of delinquencies.
We help financial institutions value the amortization of their MSR. By outsourcing your MSR Valuation to McQueen Financial, you will have your needs met by:
- An independent third party market valuation.
- Risk-tranche level reporting.
- Testing for impairment of value.
McQueen Financial also provides the following Original Mortgage Servicing Rights Management services:
- Meet accounting guidelines for FAS 122/125/140.
- Perform the amortization, risk-tranching and tracking of OMSRS.
- Provide monthly loan level performance reporting and scenario analysis.
- Test reasonableness of OMSRS factors.
- Help establish valuation assumptions.