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What are Generic Servicing Assets (GSAsTM)?
MIAC created Generic Servicing Assets (GSAsTM), in response to the overwhelming demand for more comprehensive market
pricing information for mortgage servicing assets. The Daily GSA Pricing Service is a unique product that can be
used to enhance the accuracy of internal pricing and the overall transparency within the MSR market.
The GSAsTM are MSR assets whose fundamental characteristics such as Pass-through
Rate and Issue Year are consistent with the asset classes the Bond Market Association ("BMA") utilizes
in its dealer consensus prepayment forecast survey. Each GSA is representative of a large outstanding MSR class,
where the specific servicing-related attributes of each GSA such as note rate, servicing fee, p&i floats, escrow
balance, delinquency status, etc. are all determined by MIAC.
The Daily GSA Pricing Service represents MIAC's opinion of the
market value of various representative MSR assets based on MIAC's thorough price discovery process and calibrated
market assumptions. MIAC provides the servicing fee multiple, historical price change, OAS, duration, and convexity
for each asset. Subscribers to the GSA Pricing Service can access the MSR market and Trust IO pricing and OASes
and download the pricing directly into a database for historical tracking, reporting, and further analysis.
Mortgage Industry Advisory Company ("MIAC") creates
Daily Trust IO Pricing using the prior business day's closing IO market prices. The Daily Trust IO pricing is
the highest price of the representative survey of major mortgage dealers. This one day lag in pricing is used
in order to conform to the pricing methodology used in the Mortgage Servicing Rights ("MSR") industry.
In addition, the Trust IO OASs are calculated in MIAC Analytics WinOAS™ with current 1-Yr into 10-Yr swaption
volatility as an input and using the prior business day's interest rate environment.
All the information above is the sole property of MIAC. As such
Thomson Media makes no representation as to the the accuracy or reliability of this information and takes no responsibility
for actions that might be taken based on it.
For more information on a trial subscription to GSAsTM please
contact:
Or visit www.MIACAnalytics.com.
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