Bank of America, Citigroup, JPMorgan Chase and Wells Fargo marked up mortgage-servicing rights in the second quarter and are faced with the prospect of having to take substantial write-downs on the contracts. "We're very bearish on MSR valuations," said Paul Miller, a banking analyst at FBR Capital Markets. "They are overvalued. There are higher costs associated with the servicing, and we're very concerned about it." The banks control more than half the MSR market, according to Inside Mortgage Finance.