Incenter brokering $8 billion in GSE mortgage servicing rights

An $8 billion mortgage servicing rights package consisting of newly originated conforming loans is up for bid, according to broker Incenter Mortgage Advisors.

Incenter did not identify the seller, but described the lender as an independent mortgage banker with a strong net worth and experienced management team.

Mortgage brokers originated almost 82% of the loans, and the rest are correspondent originations.

There is nearly a 20% California concentration in the agency MSR package based on current loan balance. The next largest concentration is in Colorado at 10%, followed by Utah at nearly 8%. Other states that account for 5% or more of the loan balance include Florida, 7%; Texas, 6%; and Michigan, 5%.

Freddie Mac loans account for more than half the package. The rest are Fannie Mae loans. The majority of the Freddie loans have accelerated remittance cycles, and the majority of the Fannie loans have actual/actual remittance cycles.

The weighted average note rate is 3.918%, the average loan balance is $301,935, the weighted average credit score is 768.1 and the weighted average age of the loans is one month.

All of the loans are performing, according to information from the seller.

Most of the mortgages are secured by traditional single-family, owner-occupied properties and are either purchase loans or rate-and-term refinances.

Mr. Cooper subservices more than half the loans based on unpaid principal balance. The rest of the loans are subserviced by Cenlar. All the loans are subserviced on the Black Knight system. Electronic data transfers of loan information are available. Buyers must have Fannie Mae and Freddie Mac approvals.

Written bids must be emailed by Friday, Aug. 16 at 2 pm Eastern.