A 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).