Investment Philosophy
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.
What are Mortgage Servicing Rights (MSR)
- Mortgage Servicing Rights (MSRs) are contractual rights that give an investor the authority to service a pool of mortgage loans and receive ongoing fees for collecting payments, managing escrow accounts, and handling borrower communication.
- The MSR investor does not own the mortgage principal or interest payments, but instead, they own the revenue stream tied to servicing of the loans.
- Asset backed securitizations from Fannie Mae and Freddie Mac pay this contractual servicing fee.
- Consistency and predictability of the fee income stream are similar to a bond or a fixed income investment cash flow.
- Grander is identifying and purchasing attractively priced and optimized portfolios of MSR’s. Grander is purchasing the MSR fee streams or cash flows.
