Despite the mortgage servicing rights market being called “frozen” by Ocwen Financial (OCN) Executive Chairman William Erbey in April, the market has actually been anything but frozen lately.
Two weeks ago, $4 billion in bulk Fannie Mae-backed MSRs was put up for sale, according to Interactive Mortgage Advisors, which acted as the exclusive broker for the offering.
That offering came on the heels of more than $5 billion in MSRs being offered for sale in August.
And now a new $835 million MSR portfolio is for sale, according to MountainView Servicing Group, whish is acting as the exclusive sale advisor to the seller.
The loans in the new offering are backed by Ginnie Mae and carry an average loan size of $205,309.
The portfolio also features 99.7% fixed-rate and 100% first-lien product, according to MountainView. The pool also carries a weighted average original FICO of 691, a weighted average original loan-to-value ratio of 94% and a weighted average interest rate of 4%.
“This portfolio is being offered by one of the premier mortgage bankers in the country,” said Robert Wellerstein, managing director at MountainView Servicing Group. “It’s an exceptionally clean GNMA portfolio, with a very low coupon and low delinquencies. Given the high-quality product, portfolio size and experienced seller, we expect this package to garner a lot of interest among MSR buyers.”
The top states in the portfolio are California (23.9%), New York (9.6%), Florida (4.7%), and Pennsylvania (4.5%).
With this new MSR portfolio becoming available, it brings the total MSR offerings since Erbey called the market frozen to nearly $20 billion.
In April, Erbey said that the entire mortgage servicing rights market was stopped by the New York Department Financial Services, after the DFS put a $2.7 billion MSR deal between Ocwen and Wells Fargo (WFC) on an indefinite hold.
Additionally, the increasing rate of MSR transfers has peaked the interest of the Consumer Financial Protection Bureau, which last month expressed “heightened” concern over the high volume of MSR transfers.
But despite Erbey’s proclamation and the CFPB’s interest, MSR portfolios continue to become available for purchase.
According to MountainView, bids for the $835 million MSR portfolio are due by Sept. 16.
