MountainView Servicing Group is facilitating the sale of a Freddie Mac and Fannie Mae mortgage servicing rights (MSR) portfolio with approximately $10 billion of unpaid principal balance (UPB).
The portfolio of mostly performing loans includes 100% fixed-rate and first-lien product, a weighted average original FICO score of 763, a weighted average original loan-to-value ratio of 75% and a weighted average interest rate of 3.82%. Only about 0.41% of the loans are 30 days past due and only 0.05% are 60 days past due. None are more than 90 days past due.
Looking at the geographic concentrations, about 25.5% of the loans are secured by properties in California while about 11.8% are in Colorado and 6.5% are in Washington.
The average loan size is $232,719 and the average loan age is 24 months.
‘This portfolio has a weighted average coupon of 3.82 percent, while a lot of the servicing portfolios that have recently come to market have had weighted average coupons above 4 percent,’ says Robert Wellerstein, managing director at MountainView Servicing Group, in a release. ‘And given the recent move down in rates, this portfolio gives buyers a rare opportunity to buy a large amount of discount and par rate servicing.’
The seller, a well-capitalized bank, prefers to retain servicing on the mortgages through a sale with a subservicing agreement but will consider a traditional sale.