how do you value mortgage servicing rights 
according to the federal housing financing agency fhfa the value of a mortgage servicing right is determined by the discounted present value of future cash flows adjusted for the expected amount of prepayments 4the bottom linemortgage servicing rights or msrs give a company the ability to purchase the cash flow from a mortgage even if that person is not the original mortgage lender banks and lenders sell msrs in order to free up capital thereby allowing them to originate more loans nothing changes for the borrower except the address where they direct their payments 