The Institutional Risk Analyst

The majority of the actual cash profit generated from residential lending is found in the mortgage servicing rights (MSRs).

We look for lower prices for legacy MBS and MSRs as new allocations are used up and P&Ls sink deeper into the red...

It seems obvious that the reported book value metrics coming from many commercial banks, REITs and mortgage banks are a tad inflated...

We see an at least equal chance that margins will get squeezed for agency and MSR investors before they expand via higher interest rates

No amount of computer power can really, really enable you to predict when Fred and Wilma are going to sell or refinance their home.

magine if the Fed started margin calling the big banks in response to the April market selloff rather than supporting the system!