The Full Suite of Leading MSR Analytics

Phoenix Analytic Services

Phoenix Analytic Services (“PAS”), Phoenix Capital’s sister firm, is a provider of market valuations of MSR portfolios and residential loan assets. Combined, Phoenix Capital and PAS create the market leading mortgage servicing rights advisory firm in the industry. PAS specializes in helping its clients in three areas:

  • Valuation Services – PAS performs numerous independent mark-to-markets for clients (from small community banks and credit unions to mega-servicers).
  • Consulting / Acquisition Services – PAS has assisted a number of companies set up a mortgage servicing rights valuation department and teach them how to use a servicing rights model. In addition, PAS has guided many clients in the acquisitions of a mortgage servicing rights portfolio as well as an entire mortgage servicing platform.  A typical engagement includes a fair value for accounting purposes, PAS recommendation of what should be paid for the servicing rights and economic value using the buyer’s actual economics.
  • Analytic Services – PAS has other products including capitalization analysis, SRP analysis which shows loan level servicing values, hold/sell analyses and complete outsourcing of the Accounting management of the servicing rights asset.

PAS’ estimates of market value are based upon the characteristics of the servicing portfolio and are derived mainly through discounted cash flow analyses.  These analyses take into consideration existing conditions in the secondary servicing markets, as well as recently executed servicing transactions.  In the absence of a liquid servicing market in the past several years, PAS relies upon historical transaction levels, industry publications (MBA, PWC/OCC surveys) and discussions with clients to appropriately assess current fair value.

The valuation assumptions applied by PAS are selected from a broad range of parameters utilized by various buyers throughout the marketplace.  The selected parameters reflect those that, in PAS’s opinion, are representative of assumptions a typical buyer (or similar acquisition-minded institutions) would apply in a transaction.  The valuation approach also considers whether the marketing effort for these assets would entail segmenting the portfolio into mutually exclusive control groups, such that each portion would be structured to obtain maximum value in the prevailing marketplace.  

PAS uses sophisticated industry tools to assist in the valuation process:

  • CompassPoint servicing valuation model – PAS has extensive experience with 3rd party valuation models, using three (3) different servicing tools in its history and also has evaluated all of the servicing models available to the market
  • Andrew Davidson prepayment model – prepayment speeds are a critical component of any MSR valuation.  PAS subscribes to Andrew Davidson, an industry-leader, to provide prepayment speed forecasts.
  • Delinquency Modeling – As delinquencies have risen, they have become an increasingly important component of any servicing valuation.  This is especially the case for non-prime servicing.  With the assistance of some Wall Street firms, PAS has constructed its own proprietary delinquency curves for all asset types. 

Valuation Experience

In 2013 alone, PAS performed nearly 700 individual mark-to-market MSR valuations with a principal balance of over $10 trillion.  PAS performs mark-to-markets for over 60 percent of the top 25 mortgage servicers and has clients ranging from the largest holders of servicing rights in the country to clients owning MSR portfolios with under $50 million of principal balance.

PAS’s greatest strength comes from its relationship with PCI.  Through managing hundreds of sales transactions, PCI consistently provides PAS personnel with unique insight as to how buyers of MSRs price the asset.  Even more important is the experience gained from the dozens of buyer representative transactions in which the companies have been involved.  This deep and varied experience allows PAS to accurately calibrate its model and key pricing assumptions. 

PAS also leverages its long-standing relationships with banks, mortgage banks, private equity firms, warehouse banks and auditors/regulators to identify, understand and integrate current MSR valuation trends.  Furthermore, PAS makes use of its substantial client database to capture and track critical valuation assumptions including, but not limited to, state-level prepayment speeds and delinquency performance.     

Acquisition Experience

PAS regularly assists top servicing buyers in acquisition analysis of mortgage servicing portfolios.  

Contact Us!

Please email us at or call 303.539.7227.

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