MountainView Risk Advisors provides comprehensive and customizable risk advisory services to a diverse group of clients seeking to minimize risks and maximize returns associated with the MSR asset. Our staff has experience managing MSR risk for several financial institutions. This experience gives servicers of all sizes the opportunity to utilize best-in-class hedging strategies at a fraction of the cost of building the capability in house.

Comprehensive Services

  • Risk management program design, oversight and governance
  • Risk modeling, identification, measurement and reporting, including analysis of results and alternative scenarios
  • Developing, implementing and maintaining hedging strategies
  • Assessing risks associated with an existing hedging strategy in the current market environment, and recommending adjustments
  • Testing alternative hedging strategies in real time
  • Executing trades or consulting on trading
  • Designing robust standardized reporting processes to minimize ad-hoc projects and fire drills
  • Creating communication feedback loops to improve executive understanding and buy in on strategies
  • Making recommendations on whether to retain or buy servicing versus releasing or selling, based on the risk associated with prospective profitability and returns

Diverse Client Base

  • Clients include banks, mortgage companies, specialized servicers and investment firms
  • Client size ranges from top 10 servicers to servicers with portfolio UPBs as small as $1 billion
  • Experience of client contacts ranges from entry-level to managers of robust risk management programs
  • Client base has a variety of MSR valuation and risk management approaches

Typical Engagements

  • Periodic reviews of portfolio composition and hedging strategy
  • Analysis of portfolio risk and hedge construction, including all transaction activity
  • Developing MSR risk parameters
  • Designing and establishing policies and the control environment

Key Advantages

  • Opportunity to tap superior expertise and technology for a fraction of the cost of building an MSR risk management function in house
  • Proven track record of success through the market cycles and environments of the past 25 years
  • Team works closely with MountainView’s MSR valuation and sales teams
  • Solutions are customized to each client’s needs and may involve a single service or multiple services in a one-time project or long-term engagement

Learn more about our MSR risk management solutions by visiting the MountainView Risk Advisors website.