BSI Financial Services, a Texas-based mortgage servicing operations platform, announced that it has partnered with two institutional investors to purchase mortgage servicing rights (MSR). This capability is funded by a capital raise in excess of $140 million, which was nearly three times the amount targeted. BSI Financial will source, perform due diligence, and service MSR assets acquired in partnership with these investors. Prior to the acquisition, BSI was focused on its loan-processing platform.
Gagan Sharma, BSI Financial President and CEO, said, "With our new MSR acquisition capability, we offer our existing subservicing clients, as well as other lenders interested in selling servicing rights, the value of convenience and liquidity." Lenders that elect to subservice their loans with the company may be able to reap economic benefits, efficiencies, and flexibility. Sharma added, “We now provide a connection to the capital markets in addition to our subservicing and other a la carte services."
Lenders who partner with BSI for servicing and subservicing have the option to either subservice or sell MSRs on either a bulk or flow basis. In return, lenders could possibly see accelerated cash flow and reduced operating risk that can arise when dealing with aggregators.
In addition, loans will be boarded on the company’s ASSET360 platform, which uses exception-based processing to identify data anomalies during loan boarding and over the life of the loan and may reduce errors that potentially create compliance risk. In addition, the platform offers lenders real-time visibility into loan status and performance through a secure lender portal.
As part of its servicing capability, BSI is also offering investors a loan recapture origination service for their loans. Backed by an AI-driven engine that provides the loan origination team predictive analytics, the company says it can connect to the capital markets in addition to subservicing and additional services.