The massive offloading of mortgage servicing rights continues.
Valuation advisor MountainView Servicing Group is managing the sale of $1.2 billion in mortgage servicing rights tied to Freddie Mac and Ginnie Mae loans.
The first offering, up for bid on July 1, includes $730 million Freddie Mac MSRs, while the second is made up of $485 million in Ginnie Mae MSRs.
The $730 million Freddie MSR offering comes with an average FICO score of 753. Roughly 94% of the loans in the deal are classified as fixed-rate, first-lien products, with a weighted average original loan-to-value ratio of 77.6%.
The $485 Ginnie Mae offering, up for bidding on July 3, includes 98% fixed-rate, first-lien products with an average FICO score of 720 and a weighted average original LTV ratio of 98%.
“The recent rise in rates has pushed expected lifetime speeds on 2012 and 2013 servicing into the single digits and closer to structural prepayment speeds,” said Matt Maurer, a managing director at MountainView Servicing Group.
“With limited upside price potential and demand for MSRs still the highest we have seen in the last seven years, a lot of sellers feel it is a good time to bring a portfolio to market.”
The MSR offering is linked to 2,806 newly originated loans with an average interest rate of 3.81%, a 0.39% delinquency rate and an average unpaid principal balance of $259,996.
The second offering is tied to 2,062 newly originated loans backing the MSRs and contains a weighted average interest rate of 3.57%, a 1.45% delinquency rate and an unpaid principal balance of $235,165.
“The recent rise in rates has pushed expected lifetime speeds on 2012 and 2013 servicing into the single digits and closer to structural prepayment speeds,” said Matt Maurer, a managing director at MountainView Servicing Group.
“With limited upside price potential and demand for MSRs still the highest we have seen in the last seven years, a lot of sellers feel it is a good time to bring a portfolio to market.”
