Mortgage servicing rights on hundreds of millions of dollars in agency loans with a Midwest concentration are being offered for sale to the highest bidder.
(the unpaid principal balances were originally erroneously reported in billions of dollars; the story has been corrected to reflect millions of dollars)
The offering is for MSRs on 4,583 agency single-family loans that had an aggregate unpaid principal balance of $761.547 million as of Nov. 30.
Comprising the total are $318.159 million in Ginnie Mae loans, $242.304 million in Freddie Mac mortgages and $201.083 million in Fannie Mae loans.
The offering was announced Tuesday by Incenter Mortgage Advisors LLC, the exclusive agent for the seller.
On a weighted-average basis, the interest rate is 4.105 percent, and the service fee is 0.2867 percent, while the original term is 331.8 months, and the remaining term is 316.8 months.
Delinquency of at least 30 days, including foreclosures and bankruptcies, is 2.26 percent.
Michigan is the location of properties securing 37 percent of the loans, and 19 percent are in Minnesota. No other state has a concentration of 10 percent or more.
While the seller prefers to sell the conventional and government loans as a single transaction, it will consider bids on separate portfolios.
“The seller would prefer that the successful purchaser be capable of completing its due diligence and executing a purchase-and-sale agreement to effectuate a bulk sale date on Jan. 31, 2018, with a mutually agreed upon transfer date to be specified in the purchase-and-sale agreement,” the announcement said.
Bids are due by Jan. 9.
Interested parties should contact IMA Managing Director Thomas M. Piercy at 303.302.9234 or [email protected].
