IMA Launches eMSR Exchange

Incenter Mortgage Advisors launched a new marketplace for buying and selling eMSRs.

Mortgage servicing rights are contractual agreements in which the right to service an existing mortgage is sold by the original mortgage lender to another party that specializes in servicing. The eMSR Exchange connects buyers and sellers of co-issue flow offerings online.

The Exchange purchases offerings from sellers directly, then acts as an intermediary to buyers.

According to projections from Rice Park Capital Management, the MSR market is expected to grow by an additional $1 trillion unpaid principal balance by 2025. It currently totals $14 trillion, which translates to around $200 billion of market value.

But values have dipped thanks to an imbalance in supply and demand. Companies now need to make the most of their MSRs and carefully choose what to buy.

Leaders at IMA think its exchange is just the ticket, saying sellers benefit by getting the best possible MSR prices, while buyers are able to acquire the rights to service mortgages “that match their ideal characteristics with loan-level precision.”

“The word transformational is often an exaggeration, but by creating an expansive marketplace for MSR trading, we feel the description is merited,” said Tom Piercy, Managing Director, IMA. “By launching the eMSR Exchange now, we are enabling participants to capitalize on a bright spot in the mortgage market.”

The Exchange provides optimum allocation among multiple buyers through IMA’s eMSR tech. Each loan is matched with a buyer’s pricing grids based on its loan characteristics.

All participating sellers have access to live pricing from every participating buyer when markets are open, and archived pricing after hours for quick action when trading resumes. Sellers receive pricing within seconds of uploading their loan-level data files.

Denver-based Incenter Mortgage Advisors provides trading and advisory services for MSRs and whole loans. It issues MSR offerings, manages the bidding, negotiates the pricing, and supports the transfer of MSR and eMSR assets.