Investment 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 represent the right to receive the cash flow from the servicing fee of FHLMC and 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. Servicing activities also include billing the borrower; collecting principal and interest payments as well as taxes and insurance payments; disbursing property taxes and insurance premiums; accounting for these activities at the loan and investor level; and forwarding funds to an investor in the secondary market. The expected life of the loan is calculated based on its expected prepayment rate and is a key valuation variable.