MSR grants the right to service a mortgage loan, involving tasks like collecting payments, managing escrow accounts, and addressing customer needs. When a borrower secures a mortgage, the lender may retain or sell these rights to a third party, such as a mortgage servicer or investor. In the secondary mortgage market, MSRs can be bought and sold as investment assets, generating income from servicing fees. It’s crucial to note that MSR transfers don’t transfer the mortgage note itself; the original lender or investor retains ownership and associated risks, while MSR holders earn fees for servicing activities.