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Sources: PennyMac Bid on the MetLife MSRs

NOV 6, 2012 11:55am ET
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PennyMac Mortgage Investment Trust was considered one of the runner-up bidders on a $70 billion package of mortgage servicing rights that was sold to JPMorgan Chase by MetLife, industry advisors told National Mortgage News.

A spokesman for the publicly traded Penny Mac–which is set to release earnings soon–declined to comment.

At least one other bidder was at the table, advisors said.

It’s no secret in the industry that the REIT has been building capacity at its servicing platform. Headquartered in Moorpark, Calif., PennyMac has rapidly increased its correspondent purchases and its interest in the servicing business.

“I’d been hearing PennyMac” but it didn’t turn out that way, said one advisor who spoke under the condition his name not be published.

The purchase price on the MSRs was not disclosed.

The fact that JPM even bid–and actually won–surprised some investors in the space. One source said, “Some of the Chase guys that I know are baffled by this.”

JPM’s servicing portfolio has shrunk the past several quarters. According to figures compiled by National Mortgage News and the Quarterly Data Report, JPM ranks third nationwide in MSRs with just under $1.1 trillion.

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