Residential Mortgage Servicing Rights Transaction Advisory

MountainView's MSR transaction advisory team offers in-depth support for both buy and sell-side transactions. Our strong market presence and successful track record are a direct result of our deep relationships with the major participants in the MSR market and our ability to deploy our strong analytics capabilities. These competitive advantages give you the tools to conduct accurate price discovery and develop optimal transaction strategies.

We go beyond the traditional brokerage services employed by our competitors by helping our national, regional, and local mortgage originator and loan servicer clients better understand the dynamic behavioral relationship between their MSR assets and current and projected market conditions. Our unique business model taps into the extensive knowledge of our senior leaders from our MSR analytics and hedge advisory teams to provide you with deeper insight into your MSR portfolios.

Market Knowledge

Our market knowledge comes from our extensive network of eligible buyers spanning financial institutions, servicers, and asset managers and our in-depth understanding of the MSR market dynamics. Our market knowledge allows us to provide you with the following:

  • Specialized demand opportunities in order to maximize your pricing benefits

  • Objective advice on "when and how to go to market" and on where to set the target sales price, resulting in more realistic seller and buyer expectations and greater certainty of execution

  • A deeper understanding of how delinquent and credit-sensitive MSRs are valued and traded

Portfolio Analysis

Whether you are a buyer or a seller, a critical component of a successful investment or asset liquidation is a deep understanding of the components of the MSR portfolio. As a first step, MountainView typically performs a stochastic (option-adjusted spread) analysis of the MSR portfolio. Our analysis includes the incorporation of market-calibrated OASs, or yields, which are often accounted for at the cohort level (including investor and product type). Additionally, MountainView maintains proprietary models measuring spot and long term projections for primary and secondary spreads, including the mean reversion of those spreads. We further track and model other mortgage assets, such as IOs and agency trust interest-only strips as well as the TBA MBS market, in order to provide you with valuable insights into valuation metrics and appropriate spread differentials.

For our buy-side clients, we perform extensive testing of key assumptions and attributes around the MSR portfolio in order to frame the risk/reward relationships. We perform these tests in order to provide buyers with the ability to optimize their indicative and final bid prices.

For our sell-side clients, we evaluate the MSR portfolio analytics with a view to optimizing the selection of MSR assets to be included in the sale offering, and thus maximizing the objective of achieving our client's desired target price. We highlight both the positive and negative attributes of the sale portfolio in order to identify any challenges prior to going to market and to prepare our clients for subsequent price negotiations. As part of this process, we present our sell-side clients with multiple potential sales scenarios, accompanied by supporting transaction economics for a range of market bid levels.

Superior Service

As a MountainView MSR transaction advisory client, you will receive customized transaction support services designed to make the process as easy and efficient as possible. We provide our sell-side clients with professionally developed offering materials which include detailed information on the MSR portfolio characteristics, as well as the bid and transaction terms and conditions. We will assist you throughout the price negotiation process by participating in calls with counterparties, quickly preparing repricing scenarios and providing holistic transaction management, including support in the contract negotiations and documentation, assistance with obtaining agency approvals, managing timelines and facilitating the servicing transfer of the MSR portfolio.