$10B package of Fannie and Freddie MSRs goes up for bid

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Incenter Mortgage Advisors is facilitating the sale of more than $10 billion in mortgage servicing rights tied to Fannie Mae and Freddie Mac loans.

Almost 88% of the nonrecourse loans come from wholesale sources, and nearly 12% are correspondent originations, according to data provided by the seller. Less than 1% of the loans come from retail sources.

The fixed-rate loans in the offering have a weighted average age of just over nine months and terms ranging from 10 to 30 years. The offering also includes a smaller amount of hybrid adjustable-rate mortgages with rates that are fixed for five or seven years before they convert to ARMs.

The weighted average interest rate is 4.167% and the average loan size is $263,646. None of the loans are delinquent and there are no foreclosures or bankruptcies. More than $2 billion of the loans have lender-paid mortgage insurance in place.

More than 61% of the mortgages are purchase loans, over 24% are rate-and-term refinances and in excess of 14% are cash-out refis. Owner-occupied properties back more than 90% of the loans, almost 7% are collateralized by investment properties and 3% of the properties have second homes on them.

The largest geographic concentration is in California. California properties secure more than one-third of the current balance of the loans.

More than 59% of the properties are single-family homes, over 25% of the properties are in planned unit developments, about 12% of the properties are condominium properties and 3% of the properties have multi-unit structures on them.

Cenlar subservices all the loans on the Black Knight servicing system and electronic data transfers will be available. All loan files are imaged.

Written bids are due June 28 at 5 p.m. Eastern time. The seller requires that due diligence be completed and a purchase and sale agreement be executed on or before Sept. 28.

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MSR Wholesale lenders Mortgage brokers GSEs Subservicing Fannie Mae Freddie Mac