Heber Fuger Wendin (HFW)
Independent, fee-only financial advisor and investment counsel firm established in 1934
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Mortgage Servicing Rights Valuations

Mortgage Servicing Rights Valuations

Mortgage Servicing Rights Valuations

HFW provides banks and credit unions a low cost valuation model that calculates the value of mortgage servicing assets.  The mortgage servicing rights (“MSR”) value is a present value of the future income stream attained from mortgage servicing fees, ancillary income from processing mortgage and related payments, delinquency effects and overnight income of processing “float.”  The value is the sum of the present value of these future income streams, which is impacted by assumptions on prepayment or decay rates, mortgage age and classifications and the applied discount rate.

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