MountainView Servicing Group is the leading provider of MSR portfolio valuation services. We valued 649 portfolios for more than 140 different clients in 2011. Our valuation clients include nine of the top 10 servicers and a comparable portion of the top 20 or 30 servicers.

Comprehensive and Current Valuation Expertise

  • Perform approximately 50 portfolio valuations every month
  • Collect and synthesize data points from secondary servicing market trades and other relevant data points, including industry survey results, agency trust IO pricing, and 100+ clients’ points of view
  • Provide both static- and stochastic-based valuations
  • Possess an understanding of MSR-related regulatory and accounting issues
  • Support and facilitate clients' monthly and quarterly accounting activities
  • Participate in discussions of accounting issues with clients' regulators and auditors
  • Have regular discussions with clients, auditors and regulators related to the validation for our fair value assessment

Valuation Platform

  • Use a proprietary front-end system
  • Build valuation models using IPS/Sondero (RF/Spectrum) and Compass Analytics
  • Build prepayment models through dealer consensus, AD&Co. and CPR/CDR

Valuation Team

  • Have three senior analysts with more than 35 years of combined experience valuing MSR assets
  • Have more than 30 years of combined experience in the team managing our front-end system

Benchmarking MSR Pricing Levels

  • Market trades in the bulk and flow markets
  • Distressed trades taking into account the bifurcation of reps and warranties
  • Major industry surveys
  • SRP and cap grids
  • Pricing of similar assets, such as agency trust IO, stripped excess, agency inter-coupon spreads, and agency buyup and buydown grids
  • Data extracted from quarterly financial releases

Definition of Valuation Assumptions Set

  • Consultation with more than 120 clients on their specific experiences and modeling assumptions
  • Feedback and discussions with clients' regulators and auditors
  • Surveillance on deals in the secondary MSR market, where transaction data is based on arm's length agreements between parties
  • Prepayment and delinquency data from CPR/CDR and capital markets research (e.g., various IB mortgage desks) as well as tracking of various rates and spreads and refinance and HPA/HPD measures
  • Client-specific data for key assumptions with an understanding of what would be included in a market bid
  • Major industry surveys 

Other Valuation Factors

  • Stochastic vs. static view
  • Seller, buyer and holder sentiment
  • Impact of varying MSR hedging activities
  • Current and forthcoming accounting or regulatory issues
  • Reconciling client results to MountainView peer results, striving for a consistent methodology while recognizing there is not a single correct answer