Provisional Start & End Times
May 1: 8:00 AM – 5:30 PM CT
May 2: 8:30 AM – 12:30 PM CT
Preliminary Agenda Topics
MSR Market Dynamics: Interest Rates & Macroeconomic Factors
Which macro factors are you watching most closely right now?
What do you expect from the Fed over the coming year?
How much do rate expectations/general sentiment impact MSR values?
Inflation, labor markets and wage growth assessment on interest rates and business prospects
What changes are you observing in the mortgage market as a result of changes made by the new administration?
What are you keeping an eye out for as the year progresses from a regulatory perspective?
Do you expect mortgage loan defaults to increase?
Major factors impacting value and performance of mortgage servicing rights portfolios
Interest rates, prepayment and recapture relationship analysis in today’s market
Supply-Demand & MSR Portfolio Performance Outlook
What have we seen in terms of supply and demand in the past 3-6 months?
How are changes in population, age distribution and migration patterns likely to influence the demand for housing in different regions?
What product types are in most demand?
What is the impact on price?
How are rates and prepayments impacting performance?
Assessing less bank-owned servicing, counterparty issues and banks going out of business
What is the CSFB and FHA up to? Other regulatory/compliance concerns?
Are banks and non-banks selling MSRs to stay afloat?
Future economy and where MSR values will be in 1 year
Housing Data & Mortgage Origination Trends
How do you see recent HUD initiatives alleviating liquidity concerns in the housing market?
What else needs to be done?
Home price forecast for the next 1-5 years
What sources of data do you find most reliable when analyzing housing and mortgage trends?
Which economic indicators do you consider most important for predicting the health and trajectory of the housing market? What are they currently suggesting?
What potential risks or challenges do you see on the horizon for the housing market?
How can industry participants and policymakers mitigate these risks?
Potential changes at FHA and implications for the housing and mortgage markets
Delinquent loan outlook and strategies
Mortgage origination trends across ARM and non-QM products
Assessing the Regulatory Landscape Under a New Administration
Regulatory capital overhaul: what does Basel III mean for the mortgage market?
What changes do you expect from the new administration that will directly impact banks and mortgage originators more broadly?
What is coming down the pike from HUD?
What is top of mind for compliance departments today?
How are changes implemented to stay compliant impacting operations and profitability?
Any added FHFA scrutiny on the equity side of MSRs?
What does this mean for existing financing agreements and MSR sales?
C-Level Bank/Non-Bank Perspectives in a Consolidated Market
What is the number one opportunity and challenge for your business this year?
How has your MSR strategy changed in the past year? Buy/sell/retain?
What is your strategy for Non-QM & ARM MSRs
How are you managing your relationships with servicers and other industry participants in the current market?
Margins and profitability expectations for the remainder of the year
Has your hedging strategy changed since rates began coming down?
What kind of cross-selling are you doing?
How are you managing your escrow accounts?
What is your current approach to servicing?
Crystal Balling the Future of MSR
What are we seeing in terms of origination trends?
What headwinds and market-wide risks do you see on the horizon?
Competition and pricing disconnect
Given the high amount of equity in homes what kind of scenarios will cause great increases in delinquencies?
Servicing challenges, costs and impact on profitability for MSR buyers
Are servicers looking to buy, sell or retain?
Single family rentals and where are home price predictions?
Will non-bank lenders continue to grow their market share?
Do you expect to see more consolidation within the market?
Are there any new innovations that you think the industry can be excited about?
Evaluating the role of blockchain, AI and machine-based learning
Market Consolidation: Outlook for MSR M&A
Do you expect M&A activity to persist at the same rate as the previous couple of years?
Outlook for platform and company acquisitions
Where do the opportunities lie today?
What are the main reasons for seeking a merger or acquisition vs. trading?
Potential changes to state and federal agency approvals under a new administration?
Licensing and control approvals
Build vs. Buy strategies
What happens to existing reps and warranties?
How is the financing environment changing?
Servicing and origination multiples
Join ventures
Investor Strategic Roundtable: How are Rates Impacting Your Strategy?
What is investor sentiment on the MSR market today?
How are you identifying opportunities to buy/sell as interest rates come down?
Which trends and macro factors are you keeping your eye on most closely?
Which vintages are most attractive right now?
How do these compare to new issues?
How are you modeling performance and pricing to identify the right investments?
Speed, discount and float rates
Are you seeing more distressed MSR opportunities?
MSR relative value vs. other mortgage-related investments
Are there any geographies that you prefer to others for performance?
Securitized vs. whole loan MSR investment
Is there more value in the MSR or its excess today?
Accurate Valuation & Pricing Dynamics as Rates Come Down
How are you analyzing portfolio characteristics as a means of assessing value?
What factors are currently influencing the valuation and pricing of mortgage servicing rights?
What happens to valuations as rates either continue to come down or stabilize?
How are you adjusting your models based on observed trades and market pricing movements?
Assessing the fair value of MSRs: new issue vs. vintage vs. pre-Covid pools
What are the differences in expected average pool life?
How do valuations vary in different markets around the country?
What role do prepayment and default risks play in the valuation process?
What changes, if any, have you made to your assumptions recently?
What are the counterparty and credit models saying?
Comparing the impact of IO, credit and market risk factors on underlying value
How much of an MSR’s value is currently due to escrow?
MSR & Servicing Outlook for Alternative Products
What are your views on seconds, RTLs, home equity and DSCR?
Are there any other products you target or are keeping tabs on?
How products and their servicing best practices differ?
Are there specialized sub-servicers across the product range?
Secondary market for MSR and whole loans
Sub-limits for non-QM and seconds
Distressed MSR case studies
Recapture, cross selling and prepayment levels
Best Execution for Flow Agreement, Immediate Release, Bulk Sale, Co-Issue & PIIT Sales
What factors go into deciding whether to retain or release?
Impact of pool price, gain in value and earnings projections
Flow agreements, immediate release, bulk sale, correspondent/self/broker channels
What is the bid competition landscape like for various MSR types today?
What are large buyers looking for?
Selling the cash flow while keeping the servicing
Regulatory and compliance must-knows
Risks management: credit risk, counterparty risk and assessing the impact of risk-based pricing
Mark-to-model levels
Reps & warranties when there is a merger
Which market assumptions aren’t holding up? How are you adjusting?
Developments in Servicing Cash Flow Investments
How is the excess market performing now?
Current spread movements and market liquidity
What are the advantages of acquiring excess servicing spreads (ESS) vs. holding MSRs?
Relative value of the excess vs. other MSR and mortgage investments
How sensitive are excess servicing rights to interest rate moves?
Updates on fees and servicing agreements
Any actions from the agencies with regards to ESSs?
Latest from FASB
What new opportunities are there for investors to participate in?
Transaction Management Best Practices
Assessing best execution for MSR transactions
Effectively managing MSR counterparty transactions across co-issue, flow and bulk environments
Creating efficient workflows for flow transactions, covering set-up, loan delivery, settlement, EPO, EPD and holdback
Data validation and preparation
Designing streamlined workflows for bulk MSR transactions, including legal processes, due diligence, settlement, agency coordination, servicing transfers and post-settlement activities
Settlement and post-trade support
Leveraging transaction management workflow tools and technology to improve efficiency and accuracy
Reducing repurchase risk through strategic control measures
Aligning and managing internal expectations throughout the transaction lifecycle
Evolution of MSR Financing & Securitization
How are servicers, investors and other industry participants finding creative ways to finance transactions and investments in MSRs?
How are you threading the needle to ensure plentiful liquidity while the agencies retain control over the servicing of their loans and collateral?
Warehouse lines for MSR vs. for agency and non-agency originations
How are warehouse line terms changing? What are you able to negotiate and what are you having to accept?
What short term financing options are most attractive?
Evaluating the excess servicing market
Financing servicing and excess fees for Fannie, Freddie
Changes in the servicing advance market post covid
Being prepared for the margin call
Alternative Private Financing & Equity Fundraising Strategies
What alternative private capital sources are most available and attractive today?
What do structures and terms look like?
Where is your equity coming from? What are the terms and structures?
Excess spread investments through private equity and lending structures
Are you using leverage? Using subscription financing facilities, MSR-backed financing facilities & servicing-advance facilities
Are joint ventures attractive to facilitate investments in servicing cash flows?
What do terms look like?
What kind of risks are you worried about?
To Hedge or Not to Hedge?
What is your hedging strategy in the current environment?
What is influencing this most significantly?
How can one employ a two-way rate hedge strategy?
Hedging internally vs. outsourced management
Interest rate hedging: futures, swaps and options
Cash flow performance and initial margin requirements of available products
Best practices for hedging low coupon ‘20-21 securities vs. today’s paper?
Treasury/mortgage basis
Importance of complexities like cost, execution, transparency, margin and central clearance in products you use
Changes in the TBA market and selection of coupon rate
Best practices for maintaining a portfolio with a neutral duration in the face of evolving market conditions
What strategies can be implemented to effectively manage prepayment risk and optimize portfolio performance?
Using a Sub-Servicer vs. Servicing In-House
Tools to measure cost of servicing in-house or outsourcing
Fees incurred selling on MSRs vs. selling to a sub-servicer
Choosing a sub-servicer: what to look for?
Forming strategic partnerships that support the servicer’s business model
Servicing transfer best practices and the changing complexion of servicing subject to transfer
What kind of collateral should you not self-service?
How important is cross-selling when you look for a sub-servicer?
Servicing the excess and other unique products
Changing agency obligations
Oversight best practices
Setting up a forbearance infrastructure
Assessing Escrow Value & Management Strategies
How much value is currently due to income generated from escrow balances?
Which other components of value are you looking at?
Impact of interest rates on escrow vs. cross-selling income
How much leverage/risk are you willing to take?
Value of escrow as taxes and insurance rates rise
Servicing best practices including escrow analysis, managing payments, servicing transfers and interest owed
Investing escrow funds
Is escrow making MSR more attractive to banks?
Any recent updates to your escrow agreement?
Impact of rising property values on escrow accounts
Counterparty risk: have recent issues with bank bankruptcy impacted your escrow deposit policies?
Evolution of AI, Tech & Data Utilization in MSR Management
How is AI being implemented successfully today?
Improving operational efficiencies to prepare for a recapture volume increase
GNMA MSRs and buyout risk
How can AI and tech improve servicing efficiency and outcome?
Can AI be implemented to take advantage of cross-selling opportunities?
Data analytics and predictive models
How AI can help in fraud detection
How is the customer experience being enhanced?
What kind of investment decisions is technology currently helping with?
Closed Door Meeting for Originators & Investors
Mortgage originators and investors meet to discuss MSR trading, hedging and retain-release strategies in the current uncertain interest rate environment, amongst other pertinent topics.