Value-at-risk was the buzzword floating around the Mortgage Servicing Rights Conference sponsored by the Institute for International Research in Chicago recently. Using a value-at-risk, or VAR, model is the best way to hedge notoriously unruly MSRs, claimed Charles Richard, co-founder of Quantitative Risk Management. Why? Because VAR answers the question of how much money an MSR portfolio can lose within a given time (one day, one week, etc.) and allows the institution to dial…