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Providing attractive cash flows that are complementary to Annaly’s core Agency MBS strategy.

Annaly’s Mortgage Servicing Rights (“MSR”) Group invests in MSR assets, which provide the obligation to service residential loans in exchange for a fixed servicing fee.

Through the hiring of key personnel, procurement of strategic partnerships and build-out of necessary operational infrastructure, Annaly has fully scaled its MSR platform with a portfolio of $2.8 billion in assets. Our MSR portfolio provides complementary cash flows to Annaly’s Agency MBS investments.

Annaly Mortgage Servicing Rights Group

Assets

$2.8bn

Capital

$2.5bn​

Strategy

Non-Cyclical

Strategic Approach

  • Portfolio is complementary to Annaly's Agency MBS strategy by offering an attractive yield while providing a hedge to mortgage basis volatility and slower discount prepayment speeds
  • As an established and scaled servicer, Annaly is well-positioned for opportunistic growth in both the bulk and flow MSR markets
  • Annaly serves as a strategic partner to originators given certainty of capital and complementary business strategy
  • Dynamic recapture capabilities with the ability to allocate strategies across several industry-leading subservicing partners
  • Portfolio consists of low coupon, high quality conventional MSR
Strategic Approach

Portfolio Summary

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Annaly MSR Holdings (Market Value, $mm)(1)

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/~/media/Files/A/Annaly-V3/charts/portfolio-summary-09302024.csv
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Annaly MSR Holdings (Market Value, $mm)(1)

Current Portfolio by the Numbers
(Excludes Interests in MSR/MSR of LP Interest)

Key States
$2.8
Market Value ($bn)
Key States
$188bn
Unpaid Principal Balance
Key States
578
Loan Count ('000)
Key States
3.12%
Weighted Average Coupon
Key States
757
Weighted Average FICO
(at Origination)
Key States
70%
Weighted Average LTV
(at Origination)

Analytics, Innovation and Technology​

Our significant technology investments have led to the development of proprietary portfolio analytics, financial and capital allocation modeling, and other risk and reporting tools, which, coupled with cutting-edge digital transformation applications, support the operating efficiency of our business. These in-house proprietary analytics support our portfolio through the identification of emerging prepayment trends and aid in accurately estimating cash flows.

Endnotes