Bids are now being accepted for mortgage servicing rights on as much as $3 billion in home loans that are backed by the housing finance agencies.
The offering includes a bulk MSR purchase on 2,989 mortgages that had
an aggregate principal balance of $628 million as of the end of last month.
Fannie Mae loans account for
2,711 units with a collective balance of $557 million, while there are 278 Freddie Mac loans totaling $71 million.
The offering was announced Thursday by Incenter Mortgage Advisors LLC, the exclusive broker for the seller.
On a weighted average basis, the service fee is 0.2527 percent, and the interest rate is 4.056 percent, while the original term is 334.6 months, and the remaining term is 325.0 months.
New Jersey is the location of properties securing 28 percent of the loans, and Pennsylvania is the location of 16 percent. All other states have a less than 10 percent concentration.
Just 14 of the loans are delinquent at least 30 days, and only one is in foreclosure.
“The seller is requesting the successful purchaser be capable of completing its due diligence and executing a purchase-and-sale agreement to effectuate a bulk sale date on or prior to Nov. 30, 2016, with a mutually agreed upon transfer date to be specified in the purchase-and-sale agreement,” IMA stated.
In addition to the bulk offering,
MSRs are being offered on a flow basis for between $100 million and $200 million per month of Fannie, Freddie and Ginnie Mae co-issue MSRs.
“The seller would prefer that the successful purchaser be capable of completing its due diligence and executing a purchase-and-sale agreement to effectuate the first monthly sale date January [2017] with a ramp up going forward,” the offering stated. “The seller requests a 12-month commitment to purchase co-issue with minimum three month pricing commitments that are renewed but subject to approval by seller.”
IMA noted that the offering could work out to servicing on more than $1.8 billion in Fannie and Freddie loans over the next 12 months and servicing in excess of $1.0 billion on Ginnie loans.
Bids will be separately considered for the bulk and co-issue offering. Separate bids will also be considered for the government-sponsored enterprise loans versus the Ginnie mortgages.
Bids are due by Nov. 2.
Prospective buyers can contact
Incenter Mortgage Advisors Managing Director Thomas M. Piercy at 303.302.9234 or [email protected].
