What drives deal economics: MSR marks, capital impacts on prices, indemnification caps as pricing input, basis-point math, scratch-and-dent repricing.
An excess servicing spread sale carves the servicing fee in two and sells the top slice while the seller keeps servicing the loans. The seller retains a base servicing fee for doing the work, and the spread above that base is split by percentage between buyer and seller. In the Nationstar transaction that set the…
How will an FHFA capital recalibration impact Mortgage Servicing Rights (MSR) valuation marks? An FHFA capital recalibration under Executive Order 14393 will directly impact MSR marks by altering the regulatory capital costs of holding these assets and changing the valuation haircuts applied in financing arrangements. Depending on whether regulators implement meaningful, targeted, or delayed relief,…
