More than $6 billion in recent secondary marketing trades included transactions involving servicing, whole loans and mortgage-backed securities. The residential and commercial mortgage deals were made on portfolios backed by both performing and non-performing assets.
First Niagara Financial Group Inc. said last month that it sold $3.1 billion in MBS. Proceeds from the sale were used to repay a comparable amount of short-term debt. The Buffalo, N.Y.-based company said it recognized a $16 million second-quarter pre-tax gain from the sale — which is expected to improve earnings by reducing the impact of prepayments on the MBS portfolio yield and net interest margin.
A portfolio of 1,900 performing, non-performing and charged-off second lien loans and deficiency balances for roughly $100 million was acquired by Franklin Credit Management Corp. in association with affiliate BOSCO Credit LLC, a June 13 statement said. Franklin Credit will serve as the special servicer for BOSCO. Fourteen percent of the assets are in California, while 10 percent are in New York and another 10 percent are in Texas.
The transaction brings to more than $600 million the increase in Franklin Credit’s servicing business during the first half of this year. The Jersey City, N.J.-based firm said it services more than 40,000 loans for more than $2.1 billion.
A month earlier, a Franklin Credit affiliate acquired a $403 million portfolio for $138 million, according to an announcement. That deal, brokered by MountainView Capital Group, included 7,100 non-performing second-lien loans. More than a quarter of the loans, all which were at least 150 days past due, were concentrated in California. Florida and New York each accounted for another 10 percent of the portfolio.
The sale of two mortgage servicing rights packages were recently announced by MountainView. Both transactions involved fixed-rate Fannie Mae loans. One package included $251 million in servicing rights with an average coupon of 3.93 percent and a concentration on the West Coast. The other $144 package had an average coupon of 4.05 percent, no geographic concentration and represented the third deal between that particular buyer and seller.
MountainView noted that both MSR packages were sold without bifurcation of seller and servicer representations and warranties.
A recent statement from Hudson Valley Holding Corp. indicated that $65 million in residential adjustable-rate mortgages were acquired. The purchase was made possible by the Yonkers, N.Y.-based company’s sale of $474 million in performing and non-performing loans commercial real estate loans. The CRE reduction, which was completed in two transactions through brokers, was done to reduce concentration in the asset class as required by the Office of the Comptroller of the Currency.
Hudson Realty Capital LLC recently reported that it has acquired $500 million in portfolios of non-performing and real-estate-owned properties during the past 14 months. The acquisitions included 50 loans from a New England-based bank, $70 million in loans from a Louisiana bank and $24 million in assets from a North Carolina bank.
Capmark Financial Group Inc. reported last month that it closed on the sale of two commercial mortgage loan portfolios with an aggregate principal balance of $911 million. Approximately 97 percent of the loans were owned by Capmark Bank and the rest was owned by Capmark Finance LLC. Both units are subsidiaries of the Horsham, Pa.-based company.
A non-performing first mortgage secured by Eleven80, a 317-unit multifamily tower in Newark, N.J., was acquired by KBS Strategic Opportunity REIT, according to a March 20 announcement. The $54.5 million loan was acquired for $35.0 million. KBS said it expects to receive no repayment on the loan.
On May 21, KABR Real Estate Investment Partners LLC said it partnered with Capstone Realty Group Inc. to acquire a $13.6 million defaulted first mortgage from GE Capital. The loan is secured by a 100,000-square-foot office building in Valhalla, N.Y. It’s the fifth deal the two firms have collaborated on.
