Registration and setup for Exhibitors
Registration for all conference delegates.
• Rising rates and the impact on MSR
• The Fed and its latest actions
• Oil prices and other consumer staples
• Is MSR performance equal to expectations?
• Impact of Non-Bank profitability
• 250% risk weightings and its impact
• How are you addressing excess business capacity on the origination side of the business?
• What kind of cross-selling are you doing?
• Margins and profitability
• Take on industry consolidation
• MSR buy/sell/retain strategy
• Servicing… Keep in-house vs. subservice
• As rates rise have you altered your hedging plans?
• What is worrisome on a Federal level? Economic level?
• How is value impacting your retain vs. release decision… Is there a magic number?
• When one or two basis points can have a huge impact in your retain vs. release decision how are you insuring the magic number is correct
• What are they key determinants outside of price?
• Servicing grids vs. broker assumptions vs. cash flow models
• Incentivizing production of loans you will keep
• Best execution, getting your price and retain/release
• Current vs. past mortgage loans held for sale What are the newest factors you are using in the retain/release decision?
• What is the size of the portfolio you like to bring to market? What are the additional expenses and risks associated with holding loans longer and in increasing quantity? Pipeline hedging in the current environment
• Warehouse and other funds availability
• Changes in the TBA & Spec pool markets and should you be adjusting your coupon rate?
• Managing interest rate exposure and are your hedges performing as expected?
• Hedging low coupon 20-21 vintage vs. current origination
• Natural hedge performance and current hedging costs
• Treasury/Mortgage rate spread
• Best practices when hedging ARMs
• Earnings management and hedging
• Changing MSR/RMBS and swaps, futures and options hedge ratios as interest rates increase
• Maintaining a duration neutral portfolio
• Servicing transfers… Have the pipes been wide enough to handle all the flow? What have been the clogs?
• Have all the easy mods been done? What is left?
• How are you ensuring full datasets of transferred pools? And what else do you need to do before the transfer?
• Impact of capital regulations
• Are the factors still in place for subservicing continue to gain volume?
• How is recapture and cross-selling going?
• What should you be looking for in a sub-servicer?
• Are you ready for a flood of non-performing loans?
• Non-QM and what you need to know
• And it took a year to iron out all the issues post-transfer… Lesson learned to cut down the time
• What kind of cross-selling are you having success with?
• Recapture partnership update
• What are your options with seconds? ARMs
• What are banks cross-selling and what you can learn
• Where are current recapture levels?
• Valuing cross-selling vs. recapture
The rapid increase in mortgage rates in 2022 has caused significant pain at mortgage originators – ranging from massive headcount reductions to bankruptcy. Many financially stressed originators are looking to raise liquidity by selling MSRs. Therefore, acquisitions opportunities exist to acquire MSRs for below intrinsic values. However, these types of transactions carry unique risks and execution considerations. This session will focus on recent market disruptions. It will also address unique factors to consider when contemplating distressed purchases / sales of MSRs.
With the new regulations expected to drop this Fall it will be an opportune time to review them and their effect on the MSR market
• Ginnie proposal on net worth, liquidity and capital ratios and its market impact
• Recent politics
• Conference of State Bank Supervisors and how their proposal works in
• When are these regulations expected to take place?
• Will small and medium institutions be able to meet the new requirements?
• The latest on advance funding
• Lessons learned from the liquidity problems in the beginning of covid
• Components of MSR, Ginnie/Fannie /Freddie requirements, retention requirements, transfer, acknowledgement agreements; trading vs. pre-crisis
• Transitioning to SOFR
• Financing terms, participants & volumes
• FASB & excess strip sales • Securitization vs. sale
• Is it a good time to consider unsecured debt?
• Any securitization wrinkles or innovations out there?
• How much supply is still out there? How is liquidity being impacted by interest rate rises? How are prices and net servicing fees trending?
• Evaluating the volume of Ginnie
• How do we get sellers of servicing to ensure full datasets from LOS is delivered?
• What is being done to expedite appraisals and reduce stipulations?
• What is your retention rate? Where is it going?
• What kind of products are popular right now?
• FICO scores you are seeing
• Margins of direct-to-consumer vs. other roads to market
• On the Bulk side… PSAs, Due diligence, agency approval and building out settlement and post settlement work flows and processes
• How do you figure out if someone who is refinancing will continue to be a performing asset?
• Impact of investment size and how much you need to be profitable
• Comparing Cusips vs. certificates
• How much leverage?
• Evaluating risks of different approaches as the economic scenario changes: The advantages and disadvantages of being a direct buyer vs. partnering with a seller
• Are you looking to own, take on operational risk or be a financial investor?
• How are smaller banks participating?
• Fund structuring and equity raising
• The ins and outs of the JV structure
• What is in your buy box? What is out?
• Is there still room for home price appreciation or are we looking at the opposite?
• Will defaults happen after such a run up in equity and values?
• Will sales slide back to pre-pandemic levels?
• What is the mortgage rate that causes housing prices to cool?
• Increased regulation from FHA
• Delinquent loan strategies and projections
• As moratoriums expire…
• Mortgage origination trends… Will there be an ARMS race?
• The Non-QM market and other new products
• What is mortgage demand looking like?
• How resilient are homebuyers to high interest rates?
• Balancing MSR sales and origination
• Hedging vs. natural hedges
• Earnings in different economic scenarios
• Selling MSR once vs. a little at a time
• Leverage and its impact
• Has the SEC taken notice?
• MSR valuation, markups & earnings
• How high can MSR values go?
• Markups vs. sales
• Impact of servicing in-house vs. 3rd-party
During the past few years MSR holders and investors have not had to worry much about credit in their models as forbearance ruled. Now with the expiration of forbearance coupled with higher home prices, interest rates and increased odds of a recession should we dusting off the credit part of our models?
• Modeling covid vs. post-covid MSR
• As interest rates rise…
• Changing assumptions and estimates
• What are the major components of MSR value today?
• Using cash flow models vs. broker assumptions
• As interest rates increase is escrow becoming a bigger part of your earnings?
• Modeling and valuing AMRs
• What is the value of the customer and how much is cross-selling worth as interest rates rise?
• Supply/Demand of MSR: Where is it going? What is the market impact?
• Comparing 20-21 vintage vs. off-the-run paper
• Below rate seconds vs. cash out refis
• Impact of Fed actions
• TBA vs. bank pool relative value
• Relative value between mortgages and MSR
• Where is the value on securitized MSR pools?
• How are you treating pools with increasing amounts of ARMs?
• As the value of the refi fades
• What are your duration goals?
• Is the Fed going to sell or run-off their mortgage holdings? What are the long-term impacts of the Federal Reserve’s retreat from buying MBS
• Is the Fed trying to cool of the housing market? Push down prices?
• Will the Fed continue to aggressively fight inflation?
• How high will mortgage rates get? How will rates at these levels impact the mortgage markets?
• Impact on credit cards, auto loans and other consumer credit- How will this impact on consumer credit effect the mortgage market?
• How large will the next interest rate rise be? Will mortgage rates go up or down as a result?