Replies to post #669112 on Mr Cooper Group Inc fka COOP

[redisnieurt]

They hedge the value of the MSR. They dont use the MSR as a way to make an interest rate bet. If MSR Value goes up, hedge takes a loss of roughly the same amount (hedging is not a perfect science). If MSR Value goes down, then hedge takes a gain.

MSR is a fee business. Not a way to bet on rates.