Home >> Daily Dose >> $2.7B Servicing Rights Portfolio Comes to Market
Print This Post Print This Post

$2.7B Servicing Rights Portfolio Comes to Market

money-and-gavelA new multi-billion mortgage servicing rights (MSR) portfolio has hit the market, with bids due December 18.

The offering, announced Friday, consists of Fannie Mae and Freddie Mac mortgages with more than $2.7 billion in unpaid principal balance, according to MountainView Servicing Group, which is acting as advisor on the sale.

The portfolio features 100 percent fixed-rate and first-lien product, with purchase loans accounting for 80 percent of originations.

"Given the portfolio size and the fact that it's 100 percent retail and 80 percent purchase servicing, we expect a large amount of interest," said Matt Maurer, managing director at MountainView. "We have marketed a lot of portfolios and rarely come across portfolios with this much purchase concentration."

Other quality features of the portfolio include a weighted average original FICO score of 746, a weighted average original loan-to-value ratio of 79 percent, and a weighted average interest rate of 4.51 percent. The average loan size is $207,263.

The portfolio is concentrated in the West, with California accounting for the largest share of loans at 17.6 percent. Other top states include Arizona (16.4 percent), Utah (16.4 percent), and Colorado (9.7 percent).

About Author: Tory Barringer

Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington's student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News' sister publication, MReport, which focuses on mortgage banking news.

Check Also

Strong Demand Drives Q1 Prices Upward YoY

With supply remaining tight, homebuyers scrambled in Q1 to buy up the remaining inventory, driving home prices to year-over-year highs in 99% of the nation’s metro markets.

Subscribe to MDaily

MReport is here for you to stay on top of important developments in the mortgage marketplace. To begin receiving each day’s top news, market information, and breaking news updates, absolutely free of cost, simply enter your email address below.