An undisclosed seller is putting more than $2 billion in bulk agency mortgage servicing rights up for bid next month, according to broker Incenter Mortgage Advisors.
The bid deadline for the $2.15 billion portfolio of MSRs from government-sponsored enterprises Fannie Mae and Freddie Mac loans is 2 p.m. Eastern on June 6. The seller would prefer the buyer to execute a purchase and sale agreement that specifies a mutually agreed transfer date on or before July 31.
Wholesale lending sources originated more than 88% of the portfolio, more than 10% of the loans came from correspondent lenders and the rest are from the retail production channel.
Twenty-one loans representing 0.27% of the portfolio are 30 days delinquent. None of the loans had been delinquent for more than 30 days as of April 30, but there is a current bankruptcy on one loan.
Properties from California secured almost 35% of the loans in the transaction. More than 64% of collateral is single-family and another 21.3% of loans are backed by planned unit development properties. The remainder of the portfolio consists of condominium and multi-unit properties.
Over 90% of the loans are on owner-occupied properties. More than 42% of the mortgages are no-cash-out refinances and 40.9% are purchase loans. The rest are cash-out refinances.
The portfolio on a weighted average basis has the following characteristics: a 3.837% interest rate, a remaining term of 310.5 months and an age of 15.1 months. Most loans are 30-year fixed-rate products, but the portfolio also contains other fixed-rate products and some hybrid adjustable-rate mortgages.
Cenlar has been subservicing the loans for the sellers on the Black Knight servicing system. Electronic data transfers are available. None of the loans were originated as electronic mortgages, but imaged loan files are available, and all the loans are registered with the Mortgage Electronic Registration Systems.
All loans also have lifetime transferable tax contracts with CoreLogic Realty Tax Service and life-of-loan flood determination contracts with CoreLogic Flood Data Services or LPS Services.
A group of loans with a total unpaid principal balance of more than $318.5 million have lender-paid mortgage insurance in place. All premiums were paid upfront at closing and none have ongoing premiums due.