Jump to main content

Mortgage Servicing Rights

QuantyPhi offers a Mortgage Servicing Rights (MSR) valuation model for credit unions. QuantyPhi built the sophisticated model to calculate the value of a credit union’s mortgage loan servicing income on loans that have been sold, but for which the servicing rights are retained as an income stream. The MSR model provides credit unions with an accurate way to record a present value based on the variable future cash flows of these loans.

Key Benefits:
  • Each loan is examined individually.
  • Sophisticated process to determine forecasted prepayment speeds, combining expert market consensus on large pools of outstanding mortgages with excellent geographic dispersion.  Projections based on pools of 33 million individual mortgages with a current amount of over $4.7 trillion.
  • Prepay projections segregated by loan term (10-, 15-, 20-, and 30-years), loan origination year, and loan interest rate to determine the best prepayment rate for each individual loan based on the loan’s specific characteristics.
  • A dynamic discount rate is used that combines the loan spread at origination date and the current yield curve.
  • Results provided showing base case, zero prepayment, +300, +200, +100, -100, -200, and -300 interest rate scenarios. This provides a good range of expected valuations should rates change one way or another.
  • QuantyPhi will provide a detailed final report including our process, results, and recommendation.


Learn More Download the Brochure

Our Family of CUSOs

 Interlutions CUSO Think|Stack logoQuantify CUSO