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Home » As Rates Rise, Banks Boost MSR Valuations But Are These Marks Too Aggressive?
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As Rates Rise, Banks Boost MSR Valuations But Are These Marks Too Aggressive?

July 18, 2013
Wells Fargo increased its residential servicing portfolio by a meager 2 percent in the second quarter but marked up the asset value of its mortgage servicing rights by a mouth-watering 18 percent, a clear sign that it feels comfortable about both improving delinquencies and higher interest rates. The nation’s largest lender/servicer was hardly alone among the nation’s megabanks, all of which reported higher market values on MSR remaining principal balances that were mostly unchanged. Bank of America reported...
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