Loans

Volume MSR portfolio bids totaling $15.6 billion



Extraordinarily high volume of packages worth $15.06 billion Mortgage servicing rights is one of the portfolios trading on the market this week.

The deadline for written bids for the scheme, which includes two groups Fannie Mae and Freddie Mac MSR’s weighted average coupon rate is 4.21%, according to Incenter Capital Advisors. The weighted average coupon rates of these two portfolios are 5.95% and 3.33% respectively.

The combined portfolio has an otherwise weighted average loan-to-value ratio of 74.4% and a FICO credit score of 754. The average loan size is $255,771. The average mortgage term is 24.1 months. Nearly three-quarters of the portfolio consists of 30-year fixed-rate loans. The highest geographic concentration is in Texas and Florida, which together account for nearly one-third of the mortgages in the portfolio by volume.

Delinquency rates: 2.13% total; 1.31% for 30 days; 0.32% for 60 days and 0.49% for 90+ days Overall, 0.29% of loans go into bankruptcy or foreclosure. The foreclosure rate is 0.15% and the “current” delinquency bankruptcy rate is 0.05%.

Sales of mortgage servicing rights could become more frequent this year as federal policymakers signal an eventual shift lower interest rates This may increase the risk of prepayment to a certain extent.

When mortgages in a portfolio are prepaid as a result of the borrower refinancing with another company, the value of servicing investors may be reduced.

But with the majority of outstanding single-family mortgages offering interest rates below current rates and providing retained value as a customer touchpoint, buyer interest appears to remain relatively strong. The average interest rate on Freddie Mac loans this week was 6.63%.

There are other large portfolios trading this year, including a $9.2 billion portfolio that closed for bids last month.

Smaller products also traded in January, such as a $376 million Fannie Mae/Freddie Mac portfolio concentrated in Gulf Coast states and co-marketed by Prestwick and Mortgage Capital Trading. Its weighted average maturity is 64 months and its note interest rate is 3.51%. No arrears.

MSRs for single-family mortgages backed by Fannie Mae and Freddie Mac tend to be one of the most common types of servicing transactions, but there are some other, more unusual portfolio types that have emerged on the market recently.

Notably, an unnamed East Coast commercial real estate lender is selling an original portfolio worth $285.27 million Ginnie Mae Provides multifamily and healthcare services through Mortgage Industry Advisory Corp.’s MIAC Analytics division.

While delinquency rates for owner-occupied single-family mortgages have generally been relatively low, particularly in the Fannie Mae and Freddie Mac markets, Ginnie Mae’s transactions with income-generating loans have had no delinquency rates at all, given the pressures on the commercial real estate market. A bit shocking. Being laid off.

The weighted average interest rate and loan term of this transaction are 2.94% and 27 months respectively. The average loan size is approximately $29.93 million. The deadline for written bids for this portfolio is February 8.





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