Servicing Values Sink in First Quarter

The value of mortgage servicing rights "materially declined" in the first quarter, according to an analysis by New York-based MIAC.Market prices for most classes of generic servicing assets tracked by MIAC "have continued to erode as a result of another low interest rate environment and prepayment speeds reminiscent of last September," MIAC said in its MSR monthly update. MSRs on conventional 30-year mortgages lost an average of 9% over the quarter, with the average value falling to an average of 2.95 times the servicing fee for the asset. However, in recent weeks MSR values have edged upward as a result of rising interest rates. MIAC is located at http://www.servicing.com on the Internet, and a sample of MIAC's Generic Servicing Asset valuations, updated daily, can also be found on our website by clicking on Servicing News icon to the left.