MorVest Capital LLC, a Texas-based boutique investment firm, has closed another mortgage servicing rights (MSRs) credit facility for a Virginia company, in concert with its funding partner Customers Bank.
Striving to address a funding gap for its clients' MSR strategies, MorVest has collaborated with Customers Bank to create a long-term credit facility that allows mortgage companies not affiliated with a depository institution to aggressively retain MSRs.
MorVest is the exclusive advisor to Customers Bank's $200+ million MSR term lending program, and also invests as a principal, buying a participation in each MSR loan.
MSR financing facilitated by MorVest Capital through Customers Bank is the only MSR lending program currently offering the longer term financing (five to seven years) that more closely matches the duration of the MSR asset, according to MorVest. This type of MSR financing resembles permanent capital, but at a much lower cost, making it highly accretive.
In concert with securing MSR financing, MorVest utilizes proprietary analytics models to project the impact of MSR retention for each client on future operating results and balance sheets, a benefit to these companies not available from competing lenders.