MSRs and Whole Loans together in LMS

Market conditions have made the acquisition of mortgage servicing rights (MSRs) a popular trade in 2014. We've responded to client requests by adding the ability to manage MSRs and whole loans together in the same LMS platform in our upcoming 19.78.7 release, to be shipped end of January. MSR support flows from acquisition/sale through the LMS.Ops module, allowing clients to:

  • Book and settle MSR trades within the existing LMS Purchase and Sale modules
  • Conduct servicing strip reconciliation on MSR positions through LMS.Ops and auto generate monthly journal entries
  • Sell retained whole loans to create an MSR position
  • Sell servicing rights on loan position while retaining the whole loan
  • Buy back the whole loans underlying owned MSRs to re-create a retained loan position
  • Track asset-level positions of both whole loans and MSRs on a current and historical basis
  • Report on aggregate positions with breakouts of whole loan released, retained, and MSR position summaries

We believe the MSR trade will be with us for some time. Future releases of the LMS platform will contain additional MSR-specific enhancements - most notably adding flow MSR pricing and delivery to our seller-facing LMS.Connect portal. Please contact your SSI client services representative for more detailed release notes for 19.78.7. If you're not an SSI client, contact for more information.