An unusually large bulk package of $15.06 billion in
The package, which has a Feb. 6 deadline for written bids, contains two groups of
Other weighted averages for the combined portfolios are 74.4% for the loan-to-value ratio and 754 for the FICO credit score. The average loan size is $255,771. The mortgages have 24.1 months of seasoning on average. Nearly three-fourth of the combined portfolio consists of 30-year fixed rate loans. The highest geographic concentrations are in Texas and Florida, which when combined account for nearly one-third of the mortgages in the portfolio by count.
The delinquency rates are: total, 2.13%; 30 days, 1.31%; 60 days, 0.32% and 90+ days, 0.49% Overall, 0.29% of loans have bankruptcies or foreclosures. The foreclosure rate is 0.15% and the "current" bankruptcy rate is 0.09%. The delinquent bankruptcy rate is 0.05%.
Sales of mortgage servicing rights could be more frequent this year with federal policymakers signaling an eventual shift
When mortgages in portfolios prepay because the borrower has refinanced with another company, it can diminish the value of servicing for investors.
But with the bulk of outstanding single-family mortgages bearing rates lower than current ones and servicing retaining value as a point of customer contact, buyer interest appears to have remained relatively strong as well. A Freddie loan had an average rate of 6.63% this week.
Other large packages have traded this year, including a $9.2 billion portfolio that had a bid deadline last month.
Smaller offerings traded in January as well, such as a $376 million Fannie/Freddie portfolio concentrated in Gulf Coast states that Prestwick and Mortgage Capital Trading co-marketed. Its weighted averages were 64 months for seasoning and 3.51% for the note rate. It had no delinquencies.
MSRs from Fannie and Freddie-backed single-family mortgages tend to be among the most common types of servicing trades, but there have been some other more unusual types of portfolios going up for bid in the market recently too.
Notably, an unnamed East Coast commercial real-estate lender is selling a pristine $285.27 million portfolio of
While delinquencies have generally been relatively low for owner-occupied single-family mortgages, particularly in the Fannie and Freddie market, a complete lack of them is striking in a Ginnie Mae deal with income-producing loans given the stress the commercial real estate market has been under.
The weighted averages for the interest rate and loan age for this transaction are 2.94% and 27 months, respectively. The average loan size is around $29.93 million. The portfolio has a Feb. 8 deadline for written bids.
