Denver-based MountainView Servicing Group announced Monday that it is acting as adviser for the sale of a Fannie Mae and Freddie Mac mortgage servicing rights portfolio with an unpaid principal balance of about $10 billion. Features of the bulk servicing rights portfolio include 100 percent fixed-rate and first lien product, a weighted average original FICO score of 763, a weighted average original LTV ratio of 75 percent, a weighted average interest rate of 3.82 percent, and low delinquencies.
The average loan size for the portfolio is slightly less than $233,000, and the average loan age is 24 months. Slightly more than one-quarter of the loans, 25.5 percent, are located in California, making it the state with the largest share. The seller in the deal is a "well-capitalized bank" that wishes to remain anonymous, according to MountainView. The bank prefers to retain mortgage servicing rights through a sale with a subservicing agreement, but it will consider a traditional sale. Bids are due on the portfolio by April 24.
The number of delinquent mortgage loans backed by Fannie Mae and Freddie Mac that were modified through the government's Home Affordable Modification Program is in many cases less than half the delinquency rate of GSE loans not modified through HAMP, according to the Q4 2014 Foreclosure Prevention Report. Mark McArdle, Chief of the Homeownership Preservation Office at the U.S. Department of Treasury, said the evidence suggests that a borrower's participation in HAMP has had a "positive influence" on performance in a modification.