Two new MSR offerings hit the market

The deals, involving agency loan pools with a combined value of $823M, cap off a hot MSR run through August of this year

The Prestwick Mortgage Group, an Alexandria, Virginia-based advisory and brokerage firm, has unveiled a mortgage-servicing rights (MSR) offering for a $598 million package of Fannie Mae and Freddie Mac loans.

Prestwick’s offering comes on the heels of a separate bulk offering announced recently by New York-based Mortgage Industry Advisory Group (MIAC) that involves an MSR offering for a package of Fannie Mae loans.

The bulk of the 2,544 loans in the Prestwick MSR offering by volume were originated in Connecticut, Massachusetts, Maine, New York and Rhode Island, according to the offering documents — which list Prestwick as the exclusive broker and indicate bids are due Sept. 8. The seller is identified only as an “independent mortgage banker.”

By volume, the loans in Prestwick’s offering include $365.2 million from Fannie Mae; $233.1 million in Freddie Mac loans, according to the offering documents.

The separate MSR bulk offering announced recently by MIAC involves package of 1,503 Fannie Mae loans valued at $225 million. Bids on that package were due on Aug. 23, with a negotiable sales execution date. The seller was identified as “mortgage company that originates loans with a concentration in Kansas.”

The bulk of the Fannie Mae loans in the MIAC offering by volume were originated in Kansas, Missouri and Oklahoma.

The weighted average interest rate for the loans in the MSR package being marketed by Prestwick is 3.75%, with an average loan balance for mortgages in the MSR pool of $235,166. For MIAC’s offering, the weighted average interest rate is 3.422%, with an average loan balance of $149,656. 

For the Prestwick offering, the average net servicing fee (a slice of the overall interest rate) is 0.2504%; for the MIAC deal, it’s 0.302%.

As mortgage interest rates rise — with the Federal Reserve continuing to add accelerant rate bumps 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. 

Those dynamics sparked some major MSR bulk offerings over the first half of the year, as Housing Wire reported previously.

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