Strategy MSR

Mortgage Service Rights (MSR)

Mortgage Servicing Rights represent the right to receive the cash flow from the servicing fee of FHLMC |FMNA mortgage loans. MSR’s are negatively correlated to most other asset classes. Loan servicing consists of collecting and processing loan payments throughout the life of a loan.

Philosophy

Our primary investment focus is capital preservation and providing current income. We seek investments in Mortgage Service Rights with an exceptional management team that is disciplined in research and risk management. With our strategic relationships with the top 50 originators and 100+ regional banks, we can be selective in sourcing of assets that are not readily available to the broader markets. 

Investment Process

Our in-house proprietary portfolio analytics, Mortgage Market Management (M3) to complete pre-purchase due diligence, track individual loans, valuation and pricing model which has been tested over time and support our investment process, by leveraging our proprietary technology. Our risk management process utilizes our proprietary (M3) technology to identify high risk assets in a portfolio of re-performing and non-performing assets, without loan level human servicer oversight.