Mortgage Servicing Rights - MSR

Mortgage Servicing Rights - MSR
A contractual agreement where the right, or rights, to service an existing mortgage are sold by the original lender to another party who specializes in the various functions of servicing mortgages. Common rights included are the right to collect mortgage payments monthly, set aside taxes and insurance premiums in escrow, and forward interest and principal to the mortgage lender.

The mortgage servicer must supply an annual statement outlining the duties that were performed. In return for this assistance, the servicer is compensated with a specific fee outlined in the contract established at the beginning of the agreement. Mortgage servicing rights can be bought and sold, resulting in the transfer of any administrative obligations.

Many vertically integrated lenders today will service their mortgages in-house, which means they will also own both the loan and the servicing rights. These firms will also save money in the process.

The business of selling servicing rights for mortgages represents a large business niche, and is a multi-billion dollar industry.


Investment dictionary. . 2012.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • Mortgage Par Rate — An interest rate used as the reference point for which a mortgage lender will neither pay a rebate (yield spread premium or negative points) or require discount points for a mortgage. Also, an interest rate used as a reference point for which a… …   Investment dictionary

  • Servicing Fee — A percentage of each mortgage payment made by a borrower to a mortgage servicer as compensation for keeping a record of payments, collecting and making escrow payments, passing principal and interest payments along to the note holder, etc.… …   Investment dictionary

  • MSR — Mountain Safety Research (Academic & Science » Universities) **** Mortgage Servicing Rights (Business » General) ** Main Supply Route (Governmental » Military) ** Main Supply Route (Governmental » Transportation) * Model Specific Register… …   Abbreviations dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”