MORTGAGE LOANS AND SERVICING RIGHTS: BUY, SELL, OR HOLD?
As a mortgage banker, you need to determine the right price for either buying or selling a pool of loans or the servicing rights to those loans. Alternatively, if you are a banker or servicer planning to securitize, you need to understand loan pricing at origination and identify which loans will contribute and/or detract from the overall quality of the pool. Regardless of the scenario, examining the projected value of a pool of loans is essential, resting largely on whether the underlying loans will perform, outperform or underperform.
At AD&Co, we can help. Our products help value how a pool of loans will perform taking into account risk resulting from borrower behavior and macroeconomic issues. By using loan-level data, we combine our industry tested credit and prepayment models, interest-rate models, home-price models and proprietary analytics to evaluate risk and forecast values.
Supported by our experienced client service team that is available to address any concerns, our products help you:
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Evaluate opportunities to buy or sell pools of loans (servicing retained or servicing released)
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Project loan-level and pool-level values
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Determine servicing values, including both overvalued and undervalued servicing rights in the market
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Conduct hedging strategies
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Run overall risk management
