Valuing mortgage servicing rights is tricky in normal times. The foreclosure documentation mess threatens to make the process even more difficult.

"It's just another whammy to the mortgage banking industry and the mortgage servicing assets," said Brett Schaffer, the president of Phoenix Capital and Phoenix Analytics Services, which provide mortgage servicing rights advisory and valuation services. "The servicing remains highly illiquid at historical standards. It's kind of hard to wonder … how much more illiquid it will become, but certainly this will add to it."

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.