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.
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