Mortgage

MIAC puts over $6 billion in mortgage servicing rights up for bid

MIAC puts over $6 billion in mortgage servicing rights up for bid
Written by Publishing Team

Mortgage Industry Advisory Corp. Marketing a $6.23 billion package Service rights On behalf of an unnamed seller in line with A recent trend towards relatively larger offerings.

The portfolio of rights to certain cash flows from loans purchased by government-sponsored institutions or found in Ginnie Mae’s securitization comes from a lender that creates high-volume California mortgages, and can be sold on a component basis.

The rights from Freddie Mac’s loans make up 58.04% of the package. The rights from Fannie Mae loans, where the providers transferred actual principal and interest (instead of scheduled P&I), make up another 34.62%. The rest comes from stock loans that Ginnie insures.

Golden State represents by far the largest state concentration in the portfolio at 56.10% (primary balance) or 49.29% (number of loans). The second largest is Washington with 12.27% or 12.02%, respectively. Followed by Illinois (7.61% or 5.34%). Concentrations of the remaining cases involved are all less than 5% in balance and counting.

The weighted averages for the package are as follows: life of the loan, eight months; The interest rate is 3.02%; late payment rate 0.76%; and a FICO credit score, 750. The average loan size is $353,763. The 30-day late payment rate is 0.33%. Rights on loans over 120 days past due make up 0.15% of the portfolio. The default rate for mortgages that are 60 days or more past due is 0.4%. Also, the late payment rate of more than 90 days is 0.4%. Historically, mortgages start the foreclosure process after the three-month mark, but the percentage of loans that are more than 120 days overdue has increased due to patience It extends to borrowers experiencing difficulties related to the coronavirus.

Written bids must be received by 5 PM on January 20.

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