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Stability? Servicing Values Continue to Flirt With All-Time Lows.
You were expecting burnout this year? Thought the percentage of home loans originated to people refinancing an existing loan would finally start to fall? Once again, you might be jumping the gun if you thought the value of mortgage servicing portfolios was poised to rise early in 2003.
The industry's leading economists expect refinancing to account for almost 60% of loan originations this year, about the same as last year. That means a substantial portion of your portfolio is going to turnover, just like last year and the year before. And that continues to put a damper on the market for MSR portfolios.
With few trades actually reaching the market (Hamilton, Carter Smith & Co., Beverly Hills, Calif., was testing the market on current coupon deals as this issue of MSN went to press), lenders are looking for other ways to gauge the value of their portfolios.
Mortgage Industry Advisory Co., New York, has created an index of "Generic Servicing Asset" values to do just that. MIAC's index found that MSR values once again hit an all-time low in March as a result of low interest rates and prepayment pressure. Not a surprise, given that dealer consensus prepayment speeds were setting all-time highs for almost all asset classes.
According to MIAC's index, MSR values on most conventional loan portfolios for both 15-year and 30-year products fell below two times the servicing fee. The value of the MSRs on 30-year agency loans in March was a mere 1.7 times the servicing fee, according to MIAC.
Long gone are the days when MSR portfolios traded at multiples of nearly seven times the servicing fee.
The good news is that things improved a bit in April. The MIAC index showed that MSR prices rebounded a bit from their March lows despite ...
- Mortgage Servicing Values Appear to Be Poised for Increase.
- News wire article from: Mortgage Line Cornwell, Ted February 22, 2007 700+ words
...were at the end of last year, demand for MSRs should...mega-deals, like last year's sale of over $100...additional volume. In years past, an auction of...attention to the MSR market. Servicing values have edged up despite...fourth quarter of last year. George Christo, senior...
- As Refis Surge, Servicing Values Crumble.
- Magazine article from: National Mortgage News Muolo, Paul August 12, 2002 700+ words
...was able to offset the decline in servicing values by hedging those receivables.) Countrywide...downside on the servicing side. Still, servicing values are being impacted, and some small...Mortgage analysts note that even though servicing values are being hit hard, that new ...
- Servicing Values Starting to Creep Up Along With Rates.
- News wire article from: Mortgage Line Cornwell, Ted August 13, 2007 700+ words
...in recent months, servicing values have started to firm...ve seen the 30-year rate hit too many record...value during the boom years. Economists, by and...predicts that for the full year of 2007, the average 30-year rate will be between...
- Servicing values. (Servicing).
- Magazine article from: Mortgage Banking Donatacci, Tom April 1, 2003 700+ words
...has been the consolidation that occurred over the last few years. Partially fueled by the refinance boom, consolidation has...had a temporary triple witching-hour effect on mortgage servicing values, leading to a weak market for servicing. The good news is...
- 2004 Servicing Values Expected to Be Strong.
- Magazine article from: National Mortgage News Muolo, Paul December 29, 2003 700+ words
...Confused? Welcome to a new year in mortgage banking, a year in which mortgage rates are...thing is for certain though: servicing values have firmed up over the past...brokers anticipate that the new year could be a good year for them...
- Mortgage Scene: Don't Fret, Servicing Values Will Return - Some Day.(Brief...
- Magazine article from: Mortgage Servicing News Muolo, Paul September 1, 2002 700+ words
...that since the refi boom started last year, it has written down the value of its...loan in 2001, a 130% increase from the year before. Can you imagine what it might...will subside. And when that happens, servicing values will firm up and even rise. In fact...
- Analyze to Priority: With servicing values rising, lenders are ready to extract...
- Magazine article from: Mortgage Technology Cornwell, Ted October 1, 2003 700+ words
Over the past three years, lenders have had to manage portfolio...But now fortunes may be changing. Servicing values are rising. And lenders are finally...refinancing boom that is in its third year has changed the landscape, according...
- Servicing Values Plummet.
- Magazine article from: National Mortgage News September 23, 2002 700+ words
...less than the same period a year ago, even though its servicing...environment (which is expected next year) can be challenging for firms...their highest level in seven years, management has built in considerable...truncates. But with the 10-year Treasury dropping to 3.74...