Servicing Rights on Offer for Massive GSE Portfolio

The new year brought with it a new mortgage servicing rights (MSR) opportunity for interested buyers: a substantial GSE portfolio valued at $4.2 billion in aggregate unpaid principal balance.

According to MountainView Servicing Group, which is acting as facilitator for the sale, the portfolio is entirely made up of fixed-rate and first-lien product and features low delinquencies.

The latest offering is the fourth billion-dollar-plus portfolio to be offered through MountainView in as many months.

"We continue to see strong demand for the MSR asset," said Matt Maurer, managing director at MountainView. "And given the quality of this collateral from a well-capitalized seller, we expect this offering to sell at a strong level as well."

Among other quality features, the portfolio has a weighted average original FICO score of 752, a weighted average original loan-to-value ratio of 75 percent, and a weighted average interest rate of 4.19 percent. The average loan size is $243,937.

The majority of loans included in the sale are in California at about 51.3 percent, according to MountainView. Other top states include Arizona (8.0 percent), Texas (5.9 percent), and Colorado (5.2 percent).

Bids are due Wednesday.