In the 18 years of MIAC and eight additional years of MIAC’s Principals involvement in the mortgage industry, never has the mortgage market undergone such dramatic turmoil. The subprime and Alt-A securitization markets evaporated practically overnight. In this edition of MIAC’s Quarterly Prespective, we bring our readers some important insight into what the mortgage market will become in the post-meltdown market.
Senior Vice President, Robert Lee, is MIAC’s resident oracle on collateral behavior pricing assumptions. Mr. Lee reminds us that subprime and Alt-A voluntary prepayments are experiencing a paradigm shift and historical regression based models and analysis will have a diluted utility. Market participants price mortgage assets on a prospective and forecasted collateral behavior. As voluntary prepayments shift into involuntary prepayments (FCLs), this has a drastically different impact on subprime MSR’s than subprime Residual Interest’s values. Check out Pricing, it’s all about the Market Consensus Prepays. To better understand the impact of the subprime meltdown on the valuations of these mortgage assets.
Senior Vice President and co-Head of MIAC’s Secondary Solutions Group, Tina Reid, addresses how to maximize your secondary profitability for an agency execution in today’s razor thin margins. Having successfully captained a secondary marketing ship for 14 years in a multitude of market conditions, Ms. Reid’s experienced insights can help one keep their proverbial eye on the ball in this highly competitive marketplace. Going to an Agency-Only Strategy? Get Ready for the Battle Ahead will guide readers through a checklist of potential pitfalls.
With Sarbanes-Oxley’s fifth anniversary and the importance and visibility of both model validation and business process validation continuing to be the concern and focus of mortgage risk managers, Senior Vice President, Artem Lysenko offers some wisdom accrued from nearly 10 years of model validation with MIAC Analytics. In The Importance of being Validated, Mr. Lysenko offers a blueprint for how pricing and risk models can be effectively validated and are an important reminder that financial institutions run and rely heavily of accurate, dependable and complex models.
Managing Director and Head of Asset Sales Group, Dan Thomas, updates our readers on the dramatic - not so apparent - developments in the MSR market with MIAC’s MSR Prespective.
And finally, Co-founder and Principal, Robert Husted and Managing Director and Head of Capital Markets, Sachit Kumar announce the opening of MIAC India. With MIAC’s explosive growth and need to provide clients with 24 hour software support and asset valuations, MIAC created a SAS 70-compliant operation in Bangalore, India to work in tandem with MIAC’s NYC professional staff.
