Residential mortgage servicing rights sales and valuation advisory services provider MountainView Servicing Group announced Monday that it is acting as adviser for the sale of a Fannie Mae and Freddie Mac mortgage servicing rights (MSR) portfolio with an unpaid principal balance (UPB) of about $10 billion.
According to MountainView's announcement, 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 portfolio contains no loans that are more than 90 days late; only 0.41 percent of the loans in the portfolio are between 30 and 59 days delinquent, and only 0.5 percent of the loans are between 60 and 89 days delinquent, according to MountainView.
The average loan size for the portfolio is $232,719, and the average loan age is 24 months. Slightly more than one-quarter of the loans (25.5 percent) are located in California, followed by Colorado (11.8 percent) and Washington (6.5 percent). Bids are due on the portfolio by April 24.
"This portfolio has a weighted average coupon of 3.82 percent, while a lot of the servicing portfolios that have recently come to market have had weighted average coupons above 4 percent," said Robert Wellerstein, managing director at MountainView Servicing Group. "And given the recent move down in rates, this portfolio gives buyers a rare opportunity to buy a large amount of discount and par rate servicing."
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, according to MountainView, but the bank will consider a traditional sale.
The $10 billion portfolio is the 15th MSR portfolio MountainView has brought to market in 2015, according to a MountainView spokesperson. 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.