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FHFA’s Guidelines for Enterprises: Risk Management and Valuation of Mortgage Servicing Rights (MSRs)

FHFA's directive recognizes the importance of independent third-party valuations.

Mortgage Servicing Right (MSR) Value: The Impact of Float Income

A lesser-known driver of the increase in recent MSR values relates to earnings from float income.

Mortgage Rates Fuel Rise in Mortgage Servicing Right (MSR) Values

The rise in mortgage rates that occurred in 2022 has led to a significant increase in the value of mortgage servicing rights (“MSRs”). However, the increases are not spread evenly across all vintages.

Wilary Winn in the Wall Street Journal

Frank Wilary, Principal at Wilary Winn, recently spoke to the Wall Street Journal for their July 6, 2023, article discussing the impacts of rising interest rates on U.S. ...

Recent Developments Related to the Accounting for Acquired Assets

FASB continues to work on refining the interaction between CECL and purchase accounting.

States Push Back on Credit Unions Acquiring Banks

A growing number of states are blocking the ability of credit unions to buy banks amidst competitive concerns.

Significant Improvements to Accounting for Acquired Assets

In February 2022, FASB decided to apply PCD accounting to assets obtained in mergers and acquisitions for institutions that have adopted CECL. This avoids the double counting of credit losses for performing loans. In addition, FASB indicated that revised accounting could be applied to the purchases of seasoned loans.

Goodwill Amortization

FASB continues to deliberate on accounting for goodwill including testing it for impairment versus amortizing it over time. It appears it is leaning toward the required use of an amortization model.

OCC Provides Insights Regarding CECL Implementation

The magnitude of the changes required by CECL have created uncertainty regarding how to implement it.

The Office of the Comptroller of the ...

FMS Forward Magazine – Mergers & Acquisitions Article

Wilary Winn was recently interviewed for an article published in the July/August 2018 issue of Forward, a publication of the Financial Managers Society.

CECL Results

With all the ado being made about the CECL implementation – the two most important questions remain:

  1. How will it actually affect my existing allowance; and
  2. How can I use the information generated ...

FEATURED

Credit Union Merger Results Through 2023 [White Paper]
This June 2024 white paper, an update to our 2021 version, provides readers with an overall perspective of the merger marketplace as well as valuation metrics from the work that Wilary Winn has performed.

WHAT OUR CLIENTS SAY

“TruStone Financial has used Wilary Winn’s services for valuation of mortgage servicing rights, mergers/acquisitions and goodwill impairment testing. The entire team at […]”

– Gina Leyda, Vice President, Accounting, TruStone Financial Credit Union – Plymouth, MN