70 Investors Show Interest in $11bn Thornburg Portfolio
Investors are lining up for a shot at acquiring the servicing rights portfolio from the bankrupt ultra-prime jumbo mortgage lender Thornburg Mortgage, according to the firm selling the servicing portfolio. “We’ve had approximately 60 interested parties, and after we sent e-mail offerings out, we got another 10 offerings. So we have approximately 70 guys interested at this time,” Chris John, a member at Interactive Mortgage Advisors (IMA), told HousingWire. Up for grabs is an $11.1bn residential loan servicing rights portfolio offered by IMA. In this case, the event was expected to be oversubscribed because of the high underwriting standards Thornburg employed for the portfolio. IMA is marketing the portfolio at a 2.0 to 2.5 multiple of the service fee, which is at 24.03 basis points (bps). The servicing fee would then land within a range of 48bps to 60bps, and when taken as a percentage from the $11.1bn it translates to $50m to $60m to service the loans. John said IMA is receiving interest from standard mortgage companies, banks, hedge funds and other Wall Street players. The offering went out on Dec. 21, 2009 and IMA will be looking for potential bidders throughout the month. IMA will finish qualifying bidders no later than Jan. 4, 2010. Bidders are required to have a $50m net worth, have good standing with the mortgage giants Fannie Mae (FNM) and Freddie Mac (FRE), and avoided any downgrading from the credit rating agencies. Due diligence on the qualified bidders begins Jan. 5, 2010 and continues until the end of the month. Jan. 28, 2010 is the bid date, John told HousingWire. Write to Jon Prior. The author holds no relevant investments.