Bulk MSR Portfolio With $4.7B Of UPB Up For Bids

Posted by Patrick Barnard on May 10, 2016 No Comments
Categories : Mortgage Servicing

MountainView Servicing Group is advising on the sale of a Freddie Mac, Fannie Mae and Ginnie Mae bulk mortgage servicing rights (MSR) portfolio with about $4.7 billion of unpaid principal balance (UPB).

Bids for the portfolio are due on May 12.

“Considering this portfolio’s size and low percentage of delinquencies, we expect interest from both seasoned investors and the market’s newer entrants,” says Robert Wellerstein, managing director at MountainView. “Potential bidders should also know that the seller, which is a publicly traded bank, has previous MSR sale experience and originated most of the mortgages through its retail channel.”

The Freddie Mac and Fannie Mae segment of the offering is servicing on a 96% fixed-rate and 100% first-lien product. The loans have a weighted average original credit score of 740, a weighted average original loan-to-value (LTV) ratio of 72% and a weighted average interest rate of 4.14%. The top states for these mortgages are California (82.9%), Oregon (3.7%) and Arizona (1.8%).

The Ginnie Mae segment is servicing on a 99% fixed-rate and 100% first-lien product. The loans have a weighted average original credit score of 681, a weighted average original LTV of 93% and a weighted average interest rate of 3.95%. The top states for these mortgages are California (73.0%), Oregon (4.0%) and Arizona (2.4%).

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