Commercial banks continued to reduce the values they put on their mortgage servicing rights as unrelenting prepayment activity bled their portfolios during the first quarter of 2003. According to an Inside Mortgage Profitability analysis of the top 40 commercial banks in the mortgage servicing business, MSR portfolios were valued at an average of 0.83 percent of their outstanding balance in early 2003, down from 0.85 percent in the fourth quarter of 2002.