As you likely know by now, two banks failed in the last week. This marks the first collapse of a U.S. bank since 2020, and two of the three largest bank failures ever. In the aftermath, we’re left to question what happened, how will it affect our industry and is there anything [...]
With the run up in servicing valuations and portfolio sizes in the wake of the COVID-19 crisis, a new level of scrutiny is warranted on mortgage servicing rights (MSR) portfolios. The industry is accustomed to reviewing pipelines daily for profitability, risk exposure and data [...]
Mortgage bankers are constantly thinking through strategies to drive profitability, whether that’s growth in top-line revenue or added efficiencies. But with many dynamics largely out of their control such as regulatory requirements, volatile origination markets and labor force [...]
Prepayment modeling is one of the most important elements in predicting a loan’s future cash flow. Cash flow, of course, is the primary value-driver for both mortgage-backed securities (MBS) and mortgage servicing rights (MSR). As prepayment activity increases, interest received [...]
Many metrics contribute to a successful mortgage pipeline hedging strategy. While measurements such aspull-through rateare generally understood, others—such asduration—offer an opportunity for deeper knowledge across the mortgage industry.
Over the past year, the red-hot housing market has given many homeowners a bounty of tappable equity that has risen so quickly it’s all but burst through the roofs of their very houses. Driven by increasing home values, triggered by low real estate inventory, tappable equity – [...]
You’ve finally tossed those outdated servicing grids aside in favor of more precise mortgage servicing rights (MSR) valuation. Congratulations! With a new cash flow model, you’re maximizing the profitability of your MSR assets and avoiding period-end reporting surprises.
Surprises aren’t always welcome. A “just because” gift or complimentary piece of dessert may delight someone when delivered without notice, but balance sheet surprises are another story.
Published August 19, 2021
Plan. Prepare. Coordinate. Communicate.
As Black Knight continues to help lenders prepare to shift to from cash window to securitization delivery, these four words remain fundamental to our guidance. In arecent blog article, we offered recommendations for success, and [...]