Executing an optimized MSR strategy requires a forecasting solution that provides a comprehensive perspective of your MSR portfolio’s estimated future economic contribution. RPM was developed to forecast the results of your existing portfolio plus estimated future additions, and the impact of future MSR sales.

Phoenix can supply RPM as SaaS for clients to use themselves or can deliver its analysis and output as a paid advisory service. Phoenix’s RPM gives clients a professional-grade tool to plan their MSR strategy, make ongoing tactical choices, and optimize their outcomes.

C-suite and senior executives use RPM because it:

  • Delivers various scenario analysis for impacts to the economics of forecasted retained MSR production from changes in delinquency rates, prepayment speeds, timing and size of future bulk sales as well as various servicing cost and advancing scenarios
  • Provides summary servicing income amounts, balance sheet views, and internal rate of return, before and after estimated taxes
  • Shows client’s actual MSR portfolio performance metrics (CPR’s, delinquencies, foreclosures, advance balances, etc.) with drill-down features to drive insights
  • Includes perspective on potential agency capital and liquidity requirement

Our Approach

RPM integrates core cashflow components to build the comprehensive forecast:

  1. Production Forecast: Initial forecast provided by client, future forecasting dynamically set by client
  2. Existing Portfolio Cash Flow Forecast: Generated by Phoenix based on current portfolio
  3. Synthetic New Production: Client and Phoenix work together to create the forecasted production characteristics
  4. Synthetic New Production Cash Flow Forecast: Phoenix creates the cash flow forecast for the new synthetic portfolio.
  5. Consolidated Forecast: RPM consolidates the components to create the base consolidated forecast