Valuation of Loan Servicing

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Commercial, Agriculture, and Multi-family Loan Servicing Rights

We value servicing rights that arise from the sales of commercial loan types, including commercial real estate, agriculture, and multi-family loans.

Why Choose Us

We are one of the few firms that have taken the time to research and thoroughly understand servicing that arises from the types of loans sold less frequently than residential mortgage loans. Examples include sales and participations of commercial real estate loans, sales under the Farmer Mac programs, and securitizations of small balance multi-family loans.

Our Approach

We provide a comprehensive and cost-effective approach to the valuation of commercial loan servicing. We run our valuations at the individual loan level, which we strongly believe produces the most accurate results. Our reports highlight changes in the expected values of the servicing under various marketplace assumptions, so that our clients understand the potential economic risks and rewards of the servicing asset under different economic conditions. Our approach is transparent, and our reports include detailed descriptions and rationale for our key valuation assumptions.

Wilary Winn also helps our clients with the initial and ongoing accounting. As part of our valuation process, we provide a basis roll-forward file at the loan level that details and summarizes the amount of servicing rights to be amortized each month.

FEATURED

Mortgage Servicing Rights Valuation – Input Assumption & Shocks [White Paper]

This April 2023 white paper provides insight into the valuation of mortgage servicing rights (MSRs) and the key assumptions used to value them.

WHAT OUR CLIENTS SAY

“We have engaged the services of Wilary Winn to conduct detailed analysis of both our commercial and residential mortgage servicing assets since December 2013. […]”

– Larry Gehle, Senior Vice President & Chief Risk Officer, First Dakota National Bank – Yankton, SD