Quantitative easing strategy doesn’t fully explain why the FV of US Banks MSRs $80 billion peak in September 2008 is only $36 billion in 2016

Mortgage servicing companies through their exposures to MSRs have seen their earnings materially affected by non-cash valuation losses on MSRs due to changes in interest rates and prepayment speeds. Continued write-downs of mortgage servicing rights (MSRs), in part due to the application of “fair value” accounting, has significantly diminished investor confidence in and has limited capital market access for a number of non-bank mortgage companies. [1]

“One big issue some investors have expressed to Kroll Bond Rating Agency (KBRA) over the past year is the practice by sellers of MSRs of immediately soliciting the underlying borrowers for mortgage refinancings.” [2]

It’s time for mortgage loan servicers to start defending themselves by practicing true customer retention versus only customer recapture.

aboutMYmortgage.com’s Mission is: To empower homeowners to make informed refinancing decisions.

aboutMYmortgage.com’s Vision is: All borrowers who are considering refinancing should be provided the opportunity to discuss refinancing, and alternatives to refinancing, with their current mortgage servicer.

aboutMYmortgage.com, LLC provides mortgage servicers a patented solution to reduce unnecessary and/or repetitive refinances that result in consumer financial harm and self-inflicted MSR devaluations. The fact is that mortgage loan servicers are the best source of the “facts” regarding their customers’ existing mortgage and escrows. It’s time for mortgage loan servicers to start using aboutMYmortgage.com’s marketing platform as an endorsement to bring nonresponsive customers back to their servicer for a loan consultation.

From aboutMYmortgage.com homeowners are directed back to their existing servicer’s customer retention specialists to gain an upgraded understanding of their existing mortgage and all options available from their servicer. These may include analysis of their current mortgage, refinancing, loan comparisons with mortgage amortization tables, mortgage modification, bi-monthly payment programs, escrow analysis, re-amortization (recasting), short sales, home equity loans, advice, and other products and services.

Additionally, servicers can market to their existing customers that are at risk of refinancing using aboutMYmortgage.com’s campaigns directing homeowners to get the facts about their existing mortgage, from their servicer, before they refinance.

Three ways mortgage loan servicers benefit from aboutMYmortgage.com’s patented “Method for Mortgage Customer Retention” are:

  1. Reduces unnecessary and/or repetitive refinances that could result in consumer financial harm and potential complaints to regulators and investors.
  2. Reduces the churning of the servicing book which in turn enhances the valuation of MSRs.
  3. If an unhappy customer had a conversation with their servicer many of the servicing complaints that the CFPB received may not have been filed. [3]