A new mortgage servicing rights (MSR) portfolio has hit the market, this one valued at more than $1 billion in unpaid principal balance.
According to an announcement [1] from MountainView Servicing Group [2], which is advising on the sale, the latest offering contains mortgages backed by Fannie Mae and Ginnie Mae, 97 percent of which are fixed-rate and all of which are first-lien loans.
The Fannie Mae servicing is being offered on a bifurcated basis, meaning the portfolio's buyer won't be responsible for origination or prior servicer representations and warranties, noted Matt Maurer, managing director at MountainView.
Other quality features for the portfolio include a weighted average original FICO score of 716, a weighted average original loan-to-value ratio of 86, and a weighted average interest rate of 4.53 percent. The average loan size is $144,806.
Much of the portfolio is spread out, with Wisconsin having the highest concentration of loans at 15.9 percent. Other top states include Georgia (11.9 percent), Texas (10.5 percent), and Florida (10.1 percent).
"Given the recent move down in rates, these MSRs offer buyers the opportunity to generate recapture income without taking on counterparty/repurchase risk," Maurer said.
Bids on the portfolio are due October 29.