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For Sale: Fannie Mae, Freddie Mac MSR Portfolio – $3 Billion

MountainView Servicing Group GSE Loan PortfolioResidential mortgage servicing rights sales and valuation advisory services provider MountainView Servicing Group announced Thursday that it is acting as adviser for the sale of a Fannie Mae and Freddie Mac portfolio with an unpaid principal balance (UPB) of about $3 billion.

According to MountainView's announcement, quality features of the bulk servicing portfolio include 100 percent fixed-rate and first lien product, a weighted average original FICO score of 755, a weighted average original LTV ratio of 80 percent, a weighted average interest rate of 3.9 percent, and low delinquencies. The average loan size is $203,106, according to MountainView.

"This portfolio’s above-average amount of expected escrow balances provides a buyer with additional upside potential," said Matt Maurer, managing director at MountainView Servicing Group. "And given the portfolio size and the strength of the counterparty, we expect to receive strong bids from both bank and non-bank MSR buyers."

Texas is the top state for the portfolio with 21 percent of the packaged loans, followed by New Jersey (8.1 percent), Illinois (7.4 percent), and Georgia (7.1 percent).

Bidding for the portfolio will continue for one more week; bids are due on Thursday, February 19.

The sale of the $3 billion portfolio will be the fourth MSR rights sale of 2015 for which Denver-based MountainView Servicing Group has acted as adviser. In January, the firm advised on the sale of a Fannie Mae and Freddie Mac MSR portfolio with $4.2 billion in aggregate UPB; a spokesperson for MountainView said the company received five bids for that portfolio. On February 10, MountainView announced it was acting as adviser for an agency MSR portfolio with $736 million in aggregate UPB, with bids due February 12. The day after that announcement, February 11, MountainView brought a Ginnie Mae portfolio with $341 million in UPB to the market; bids for that portfolio are due on February 18.

Based on the annual number of sales, MountainView usually ranks first or second in the nation, according to the company's announcement. During 2014, MountainView advised on 44 MSR portfolio sales involving a total of $43.5 billion of UPB.

About Author: Brian Honea

Brian Honea's writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master's degree from Amberton University in Garland.
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