Mortgage servicing rights result from loan sales and represent the right to collect payments and perform administrative tasks on those loans. The value of an MSR is primarily driven by projected servicing fee income over the life of the loan and that value is highly sensitive to interest rate movements.
When rates fall, prepayments accelerate and MSR values decline. Managing that exposure requires accurate DCF-based valuation, actionable risk sensitivity analysis, and disciplined hedge execution. ALM First integrates all three.
What we provide
- MSR asset valuation using DCF analysis — projecting principal, interest, and prepayments across rate scenarios
- Fair value reporting with Level 3 inputs and required disclosures
- Risk sensitivity analysis: key rate duration, convexity, and derivative market sensitivity
- Tailored hedging strategy and execution to protect fair value from rate declines
- Comprehensive derivative support including fair value reporting and trade management
- Deep knowledge of derivative markets, including interest rate futures
One service. The full picture.
Rather than managing separate vendors for valuation, analytics, and hedging, ALM First delivers all three in a coordinated framework giving you a single point of accountability and a coherent view of your MSR risk from model to market.
Analytics That Empower. Tools That Deliver.
Experience the power of smarter decision-making with our secure, web-based ecosystem. Designed for financial institutions, my.almfirst.com delivers rich data, advanced analytics, and intuitive dashboards—all in one place. Access on-demand tools to optimize strategies and drive stronger balance sheet performance.
