mortgagetape™Reference Tools · Price Inverter
What it does
Enter a competitor’s borrower rate for a specific scenario and the inverter backs out either the implied margin (holding MSR multiple constant) or the implied MSR multiple (holding margin constant). Full price decomposition — TBA price, LLPA cost, MSR value, margin — so you can see where the competitor is giving money up.
What’s in it:
- Two solve modes — solve for margin at a fixed MSR multiple, or solve for MSR multiple at a fixed margin.
- Full waterfall — TBA price, agency g-fee, LLPA, servicing retention value, and residual margin all reported in bps so the math is auditable.
- Scenario inputs — agency, FICO, LTV, loan amount, state, purpose, occupancy, lock date.
- Lock-date aware — snaps TBA pricing to the chosen lock date so you can reconstruct a historical quote.
Sample questions this answers in one click:
- “Competitor is quoting 6.25% at 740 / 75% / $500K TX purchase — what margin are they running?”
- “Hold margin at 125 bps, back out the implied MSR multiple on this scenario.”
- “Rebuild our price for this scenario as of last Monday’s lock.”
Who finds this useful: secondary-marketing analysts reverse-engineering a quote, pricing desks sanity-checking a rate sheet, sales ops teams explaining to loan officers where the margin went.
Assumptions: uses the shipped LLPA matrix (Fannie / Freddie schedule), base-servicing fee, and front-month UMBS. If the competitor is running non-agency or spec-pool payups, the implied margin number is a floor, not a ceiling.