The Prestwick Mortgage Group, an Alexandria, Virginia-based advisory and brokerage firm, has unveiled an offering for a $1.6 billion package of Fannie Mae, Freddie Mac and Ginnie Mae mortgage-servicing rights (MSRs).
The bulk of the 7,189 loans in the MSR offering put out to bid this week were originated in Florida and the Midwest, according to the offering documents — which list Prestwick as the exclusive broker and indicate bids are due July 12. The seller is identified only as an “independent mortgage banker.”
By volume, the loans included $583 million from Fannie Mae; $322 million in Freddie Mac loans and $737 million in loans backed by Ginnie Mae, according to the offering documents.
Prestwick’s offering comes on the heels of a separate bulk offering announced recently by Denver-based Incenter Mortgage Advisors that involves a $915.8 billion package of Fannie Mae and Freddie Mac MSRs. Bids on that package were due on June 23, with an anticipated sales execution date of July 31. The seller was not identified.
The bulk of the nearly 4,000 loans in that MSR package by volume ($686.1 million in Fannie Mae loans and $229.7 million in Freddie Mac loans) were originated in the Northeast and California.
Denver-based Incenter has been staying extremely busy with MSR offerings, even if many of its deals are off the public radar. Tom Piercy managing director of Incenter, said the firm “is currently working on multiple deals totaling in excess of $60 billion that are not out for public auction.”
The weighted average interest rate for the $1.6 billion MSR offering being marketed by Prestwick is 3.175%. For Incenter’s $915.8 billion deal, the average interest rate is 3.148%.
For the Prestwick offering, the average net servicing fee (a slice of the overall interest rate) is 0.2927%; for the Incenter deal, it’s 0.2505.
As interest rates rise — with the Federal Reserve on June 15, adding a 75 basis-point accelerant to the mix — loan-prepayment speeds drop for lower-rate loans due to diminished refinancing activity. That, in turn, amplifies the value of MSRs because they pay out over a longer period.
In addition to the latest MSR deals announced by Prestwick and Incenter in late June, three MSR sales offerings were announced earlier in the month by Prestwick and a separate advisory firm, New York-based Mortgage Industry Advisory Group (MIAC) that together are valued at more than $1.4 billion.
The Prestwick Mortgage Group served as the exclusive broker for a $618 million offering of Fannie Mae and Freddie MAC MSRs with bids due June 2.
In addition, MIAC came out with two large MSR offerings earlier this month involving a $4.8 billion loan pool and a separate $816.7 million package, both composed of Fannie Mae and Freddie Mac loans.