If you're purchasing or valuing Mortgage Servicing Rights (MSRs), it's imperative that you utilize world-class analytics and a user-configurable system that allows you to "dial-in" your bid/results based on your experience, expectations, and operational facts (i.e., your costs, incomes, discount rates, and more). In addition, the ability to analyze and share results quickly and concisely, allows you to maximize your effectiveness when placing bids. To help you determine whether your current tools and methodologies meet today's and tomorrow's needs, we've put together a brief slide-show that describes our MSR Valuation product in more detail, and provides guidance on what we consider to be "price of entry" features and functionality. If you think there's a better way to perform MSR valuations, you're right - there is!

1. MSR Valuation
VALUATION, ANALYSIS, AND REPORTING
UNRIVALED CAPABILITIES – UNMATCHED RESULTS
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2. Who is Claren
• Founded: 2013 by team of veteran IT, Analytics, and Mortgage Industry professionals
• Vision: Provide a state-of-the-art risk management, valuation, and analysis platform to
the mortgage industry to improve performance results and transparency
• Operations: Atlanta, GA (with sales and analytics presence in New York and Philadelphia)
• Products & Services: Cloud-based Risk Management platform includes:
 MSR Valuation – Provides an intrinsic valuation of purchase mortgage servicing rights (MSR)
 Refinance Recapture – Provides an intrinsic valuation of soliciting an MSR portfolio for
refinance
 Loan Valuation – Provides an intrinsic valuation of residential whole loans
 Servicing Optimization – Determines the optimal servicing action on NPLs based on NPV
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“By far, the most comprehensive valuation and analysis models and tools I’ve ever used.”
- Claren Client, since 2014

3. Product Spotlight: MSR Valuation
• Easy-to-use, yet powerfully flexible, user interface. Control all aspects of the MSR valuation process and results.
Perform fast, consistent, and accurate valuations based on how you work, not how we think you should work.
• Identify risk exposure - Prepayment, Default, Loss, Outlier identification, and Opportunity identification (i.e.,
Refinance Recapture, Loss Mitigation strategies, and Advancing requirements).
• Comprehensive Performance and Cash Flow Models. Includes Loan or Cohort-level processing, property,
borrower, and market variables.
• Unrivaled features and functionality.
• Perform Static, Sensitivity Analysis, or Option Adjusted Spread simulation processing
• Use your file import and translation templates or ours
• Import your own custom curves or use ours
• Use your income and cost structures or ours
• Comprehensive Reporting and Data Extract capabilities. Use our reports or customize your own by downloading
the results in Excel or CSV format.
• Generates Intrinsic Valuation (i.e., NPV of life-of-loan cash-flows)
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4. • Loan-level forecast of the probability of being in a given future status
(Current, 30dpd, 60dpd, 90+dpd, FC, REO, and more)
• 513 Individual Sets of Coefficients across Multiple Collateral Types
• Based on 43M loan records and 2.1B payment records from 1997
forward
• Back-tested and fully validated models
• Utilizes Machine Learning to adjust to changing market factors
Performance Modeling
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• Non-Agency Prime • Agency – Low risk
• Alt-A • Agency – Med risk
• Subprime • Agency – High risk / HARP

5. • Import your data using your file layout or ours
• Map your columns to ours
• Translate your codes to ours
• Set your Pool Preferences (Discount Rate, Servicer Rating,
Advancing Strategy, Originator Rating, etc.)
• Set your Assumptions or use ours (HPI trend, Interest Rate trend,
Default Risk levels, Operational Costs and Incomes, etc.)
• Select the processing you want to perform (i.e., Loan or Cohort
level, Static or OAS, Sensitivity, etc.)
• Press the “Go” button – simple!
The MSR Valuation Process
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6. • Comprehensive Data Reporting
• MSR and Loan Valuation NPV
• Refinance Recapture NPV
• Performance Forecasting (by Delinquency Status)
• CDR & CPR Curves
• MSR Net Income (Year-end and Monthly)
• Principal Resolution
• Advances Forecasting
• Stratifications – Delinquency, FICO, DTI, ELTV, CLTV, and more
• Complete Data Extract Capabilities (Summary and Detail)
Fast, Accurate, and Meaningful Results!
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7. Results Output – Pool Summary
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MSR and Refi
Recapture
Valuations and
Multiples
Pool-specific
Balances and
Ratios
Loan Valuation
Info (Amount
and Percent)
Your Pool
Prefences

8. Results Output – Delinquency Summary
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Cashflows,
Valuations, and
CDR and CPR
Forecasts, by
Delinquency Status
Current Balances
by Delinquency
Status

9. Results Output – Performance Analysis
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10 Year
Performance
Forecast by
Delinquency Status
84 month
Performance Trend
by Delinquency
Status

10. Results Output – Performance Analysis
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Forecast CDR
Trend, by REO and
Short Sale
Forecast CPR Trend
(84 Months)

11. Results Output – MSR Net Income
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MSR Income, Costs,
Net Income, and Refi
Recapture Amounts
MSR Net Income Trend,
by MSR and Refi
Recapture Cash-flow
(84 months)

12. Results Output – Principal Resolution
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Principal Resolution
(Final Loan Outcomes)
Analysis

13. Results Output – Advances Forecasting
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Forecasted Year-
End Advancing
Amounts by Type
with % of
Delinquent UPB
Comparison
Forecasted
Advancing Amounts
by Type, by Month

14. Results Output – Stratifications
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Comprehensive
Stratification groupings by:
• FICO
• DTI
• Payment Ratio
• ELTV
• CLTV
• And Much More!

15. • Put the power of world-class analytics and a superbly designed user experience
and reporting engine to work for YOUR business – today!
• Utilize YOUR experience, risk and market assumptions, and operational
incomes/costs to quickly “dial-in” results that are meaningful to YOUR operation
• Work how and where YOU want to – anytime, all the time
• Leverage state-of-the-art technology to perform MSR Valuations fast, accurately,
and cost-effectively
• Review, analyze, and share results through comprehensive reporting and data
extract capabilities
In Conclusion
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16. Interested in Learning More?
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Please call us at 650-265-7627
OR
e-mail us at sales@clarenfinancial.com