Why it makes sense to explore hedging investments for mortgage servicing rights

When it comes to managing a portfolio of mortgages, or a subset of that portfolio like your mortgage servicing rights, how much money you are making is a secondary factor. Instead, you should think about your portfolio in terms of how much risk you are taking to take on those mortgage servicing rights. After all profit isn’t a factor if your forecasts for that profit never come to pass in reality.

Unfortunately, mortgage servicing rights can be difficult for many people to fully understand, particularly when it comes to the risks inherent in a group of MSRs. We should know, because at United Capital Markets, we have been working with companies to understand the risks associated with MSRs for years. We have even developed a software platform, HedgeCalc, which offers you a solution to the task of calculating your MSR risk.

On top of that, we help you understand what you can do to reduce that risk, including working with you to identify hedge investments that might help you lower your risk dramatically while retaining much of your profit potential. If you are looking to incorporate hedging investments into your strategy today, or you are looking to identify the areas of risk that affect your business, then you should visit our website at www.ucm-inc.com. There you will be able to review the benefits of using our software, and get in touch with us regarding a more high-touch review of your MSR risk. Take a look today!

Use these investment services to ensure that you understand your MSR risk

The difficulty with mortgage servicing rights (MSR) is that they offer you a consistent payout, but if you aren’t careful then you will find that you aren’t being compensated appropriately for the risks that you are taking. This is a serious issue that can impact the health of your firm if you let it, but there are ways for you to take action to analyze your MSR risk proactively.

While it might seem easy to manage the risk on a single MSR, a larger group of mortgage servicing rights can be far more problematic. At United Capital Markets, we have developed a software-based solution for customers, allowing them to manage their MSR risk on an ongoing basis.

Our investment services don’t just help you understand your MSR risk, although that’s a key part of the process. We also work with you to determine ways for you to profitably manage your MSR risk as well. These hedges can help you decrease your MSR risk and lower the volatility of that part of your business. Whether you invest in mortgage backed securities, MSRs, or other mortgage based financial instruments, you will want to take advantage of the risk analysis tools that we have developed in-house to help you better understand your business risk.

You can learn more about our firm by visiting our website at www.ucm-inc.com, and when you are ready to get started using HedgeCalc or working directly with us, you can get in touch with us to learn more about how to get started.