Mid America Mortgage reports that it has acquired mortgage servicing rights (MSRs) on a portfolio of government loans with about $2.7 billion in unpaid principal balance.
Terms of the deal were not divulged. A company press release does not say who the seller is.
The portfolio includes a number of delinquent Veterans Affairs and Federal Housing Administration-insured loans, according to the release.
“Mid America has achieved tremendous success in resolving delinquent government-insured mortgages,” says Jeff Bode, owner and CEO of Mid America Mortgage. “By purchasing this portfolio, and another like it, we are providing much-needed liquidity to smaller market players that might otherwise not have an outlet for their distressed servicing.”
The sale was completed at the end of March.
LoanCare, Mid America’s subservicer, will take possession of the purchased MSRs on May 2.