This Vice President position in Capital Markets will manage all activities related to MSR, the company’s largest and most complex asset. This includes two primary pillars of responsibility – the addition of new MSR through organic originations or acquisition, and the ongoing management of the asset, including analytics and hedge strategy/ effectiveness. To effectively price new volume and hedge the existing portfolio, this role will require a firm grasp of macro- and micro- economics, as well as market dynamics and financial instruments. Finally, this role entails a material amount of executive communication, cross-functional involvement and management of an analytical team.Job Functions and Responsibilities:
To perform this job successfully, an individual must be able to perform each essential duty satisfactorily.
- Oversight of a mark-to-model approach to value MSR assets consistent with observed MSR trading levels and within a range of two accepted third-party values
- Create quantifiable performance metrics and results as well as improved communication and execution.
- Robust knowledge of the nuanced differences and similarities between the MSR’s loan types, including FNMA, FRE, PLS, Non-QM, Reverse, and HELOC.
- Lead analysis of convexity, basis risk and other hedging considerations
- Make recommendations about hedge strategy, including levels, financial instruments, and hedge effectiveness
- Executive level communication of hedge strategy and hedge effectiveness on a regular basis
- Prescriptive benchmarking analytics correlating and comparing assumptions, leveraging price discovery to reverse engineer competitive positioning
- Operate with a Capital Markets view by benchmarking Structured and Trust IO market, translating liquidity value into point-of-sale best execution analysis
- Build and maintain term structure model to effectively value utilizing OAS approach
- Lead team to gather and internally publish MSR trading data and third-party valuations; analyze and contextualize deviations to support determination and validation of the MSR valuation.
- Valuations should utilize two approaches: fair market, and economic. Comprehension of economic value should include an understanding of average and marginal economics, supported and back-tested by actual performance
- Analyze, quantify and explain variances between the Valuation and Pricing teams’ determination of MSR yield based on internal assumptions and drivers, such as, ROA and ROE, pre-pay speeds and recapture rates
- Analyze and quantify variances in market assumptions (i.e. cost to service, recapture, escrow, float, default curves, loss assumptions, prepayment curves, etc.) versus company assumptions and actual operating performance. Work with driver owners to identify improvement opportunities and related initiatives
- Manage loan- and portfolio- level pricing for MSR across all loan types: FNMA, FRE, PLS, Non-QM, Reverse, HELOC, whole loans, call rights
- Ensure that pricing is calibrated to market/ trading levels
- Create and oversee team to provide real-time pricing capability “on-call” to meet origination needs
- Manage MSR pricing assumptions to be consistent with month-end and quarter-end GAAP valuations with any variances analyzed and well understood.
- Create transparency such that all origination channels have access to the same pricing grids
- Determine and publish expected yield of each MSR asset priced based on internal assumptions and drivers such as required ROA and ROE, view of pre-pay speeds, projected recapture rates, escrow earnings rates, etc.
- Publish a broad view of the competitive landscape and analytics to support variances in yield from our competitors. Make recommendations supported by data and analytics
- Responsible for identifying areas of improvement for MSR-related controls and governance
To perform this job successfully, an individual must have the following education and/or experience:
- Bachelors Degree required, with coursework or major in engineering, mathematics/ statistics, economics, finance
- MBA preferred
- Minimum 15 years mortgage experience required
- Minimum 8years capital markets, with increasing levels of responsibility
- Minimum 8 years experience as a manager of a team
- 5+ years of modeling experience
- Robust knowledge of systems and ability to manage large data sets
- Experience with variety of hedging instruments, such as Swaps, TBAs, Eris swap futures, etc
- Superior analytical and critical thinking skills
- Ability to solve complex and unusual technical, administrative, and managerial situations
- Superior interpersonal skills and ability to communicate complex information effectively
- Advanced strategic planning and decision-making skills with ability to analyze short and long-term effects
- Extensive knowledge of the mortgage and banking industries
- Self-motivated and capable of working independently
- Ability to partner with all levels of management to ensure effective implementation of time-sensitive initiatives and identify deficiencies and opportunities for improvement
- Demonstrated and proven ability to multi-task and meet deadlines in a fast-paced deadline-driven and constantly changing environment
- Ability to review and present data concisely and accurately
- Ability to effectively facilitate meetings, develop management reports and proven analytical ability for both micro and macro level data.
Training / Licensing Requirements:
- Must pass the Company’s Background Screening process prior to beginning employment. Additionally, as a condition of employment, you may be required to pass client-specific background check requirements or Federal/State licensing requirements, if applicable.
Company: Ocwen US
Ocwen is intensely focused on hiring, developing and retaining the best talent in the industry! Our commitment to Diversity & Inclusion ensures that we are an organization that creates, promotes and sustains an inclusive work environment in which diversity, inclusiveness and respect are integral parts of our culture and work environment. Building the reputation as an outstanding place to work, a great business partner and a valued community member is our everyday endeavor.
Ocwen’s mission is to delight our customers through caring service and innovative lending solutions. We proudly serve over 1.3 million families with their mortgage needs by helping to find real solutions that benefit our customers and help to build stronger communities. Helping Homeowners is What We Do!®
Consider an opportunity to join our global team and put “Caring in Action” while growing your career.
Ocwen and its subsidiaries are proud to be equal opportunity workplaces. We are committed to equal employment opportunity regardless of race, color, ancestry, religion, sex, national origin, sexual orientation, age, citizenship, marital status, disability, gender identity or Veteran status. If you have a disability or special need that requires accommodation, please let us know.