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Unlocking Strategic Mortgage Servicing Rights Valuation Insights: QuantyPhi’s White Paper Pioneers ALM Focus

MILWAUKEE, WI – May 14, 2024 – In the ever-evolving landscape of mortgage servicing rights (MSR) valuation, precision and foresight are paramount for financial institutions. QuantyPhi, a balance sheet optimization CUSO, recently released a groundbreaking white paper, Mortgage Servicing Rights Valuation with an ALM Focus.

MSR, a fundamental component of modern lending practices, empowers loan originators to streamline operations while retaining valuable revenue streams. In this backdrop, QuantyPhi introduces an advanced valuation model tailored to the unique needs of credit unions. This innovative framework ensures meticulous reporting of MSR assets on credit unions' call reports, accounting for the intricate interplay between changing interest rates, prepayment speeds, and income dynamics.

"Accurate MSR valuation is not merely a compliance checkbox; it's a strategic imperative," said Adam Stone, President of QuantyPhi. "Especially in the face of market rate fluctuations, credit unions must equip themselves with robust valuation tools to navigate prepayment expectations effectively."

At the core of QuantyPhi’s offering lies a sophisticated valuation model meticulously crafted to provide comprehensive insights across diverse interest rate scenarios. Leveraging years of expertise in balance sheet optimization, QuantyPhi’s model enables credit unions to proactively assess MSR valuations, empowering informed decision-making in strategic planning and forecasting endeavors.

To substantiate the value of QuantyPhi’s MSR model and underscore the tangible benefits of adopting an ALM-centric approach, a detailed case study was conducted. Drawing from real-world credit union portfolios and spanning multiple years of market rate fluctuations, the case study illuminates the transformative potential of integrating advanced MSR valuation capabilities into broader risk management strategies.

"As a trusted partner for credit unions' balance sheet risk management, we are committed to fostering financial resilience and agility," affirms Stone. "Our mission is to empower credit unions to navigate the complexities of MSR valuation with confidence, driving better strategies and enhancing long-term sustainability."

As credit unions embark on the journey towards fortified risk management frameworks, QuantyPhi stands ready to facilitate this transformation. To explore the transformative potential of advanced MSR valuation capabilities and embark on a journey towards enhanced strategic foresight, contact QuantyPhi today.