Executive Summary For purposes of lowering mortgagor borrowing costs, building a stronger banking system through more efficient hedging of mortgage risk and encouraging additional capital to enter the mortgage sector, we believe there is ample reason to include a mortgage current coupon yield index as one of the alternative indices to LIBOR Now that protective… Read more »
Perspectives
Choosing a Hedge Vendor and Preparing for Hedging
Macro Considerations At a high level, considerations for how to choose 1) a pipeline hedge vendor and 2) the type of engagement with a hedge advisor, are dependent on characteristics of the lending institution, including: Type of institution: i.e. independent mortgage banker, depository Evolutionary stage of the firm: BE to Mandatory conversion? Becoming an agency… Read more »
What is a Mortgage Servicing Right (MSR)?
By definition a Mortgage Servicing Right, herein referred to as MSR(s), is a contractual agreement where the right, or rights, to service an existing mortgage are sold by the original lender to another party who, for a fee, performs the various functions required to service mortgages. As a servicer, firms are responsible for collecting… Read more »
Whole Loan Execution
Residential loans fall into one of two categories: Agency — eligible for programs offered by Fannie Mae, Freddie Mac, or Ginnie Mae (FHA/VA) — and non-Agency. As of late 2015, Agency loans are approximately 90% of new originations. According to the Federal Reserve Board, mortgage debt outstanding in that year totaled approximately $13.5 trillion. By… Read more »
New Developments Regarding MIAC’s Generic Servicing Assets – GSAs™
Many mortgage servicing rights (MSR) market participants have come to rely on MIAC’s Generic Servicing Assets – GSAs over the past 20 years. We are proud to announce several new enhancements to our GSA study. MIAC GSA’s can answer these and other important questions. Where are Mortgage Servicing Rights trading today? Where can I compare… Read more »
An update on the MSR market following Brexit
Home mortgage rates tend to move in the same direction as U.S. Treasuries but as-is traditionally the case, seldom is there a one-for-one relationship. Such was the case on Friday, June 24, 2016, when the U.S. Market awakened to the knowledge that the British electorate voted to leave the European Union which meant the beginning… Read more »
CECL – Current Expected Credit Loss: A CORE Competency?
Current Expected Credit Loss (“CECL”, ASC 825-15) is the Financial Accounting Standards Board’s (FASB) new model for calculation of loan loss reserves, which requires consideration of multiple scenarios looking out over the lifetime of the instrument. These standards replace those now in use for preparing Allowance for Loan & Lease Losses, (“ALLL”), purchased credit-deteriorated assets,… Read more »
MIAC Perspectives Summer 2016
In this issue… CECL – Current Expected Credit Loss: A CORE Competency? Dean Hurley, Director, Capital Markets Group Jeffrey Zuckerman, Vice President, Capital Markets Group Current Expected Credit Loss (“CECL”, ASC 825-15) is the Financial Accounting Standards Board’s (FASB) new model for calculation of loan loss reserves, which requires consideration of multiple scenarios looking out over… Read more »
MIAC Perspectives – Summer 2015
In this issue… MIAC CORE ™ : Non-Agency Loss Model Dr. Glenn Mandigo, SVP, Borrower Analytics Joseph Furlong, SVP, Borrower Analytics The MIAC CORE™ is the name of MIAC’s new class of behavioral models for all asset classes including residential non-agency whole loans/MSRs, residential agency whole loans/MSRs, commercial whole loans, auto loans, credit cards, unsecured consumer… Read more »
MIAC CORE ™ : Non-Agency Loss Model
Introduction The MIAC CORE™ is the name of MIAC’s new class of behavioral models for all asset classes including residential non-agency whole loans/MSRs, residential agency whole loans/MSRs, commercial whole loans, auto loans, credit cards, unsecured consumer loans, etc. Each of these models has two components – a Voluntary Prepayment Model and a Loss Model. Each… Read more »