Mid America buys $2.7 billion in Ginnie MSRs

Mid America Mortgage Inc. in Addison, Texas, has purchased a $2.7 billion portfolio of Ginnie Mae mortgage servicing rights that its subservicer, LoanCare, took possession of Tuesday.

Jeff Bode

The loans involved are partially distressed. Mid America declined to specify the price or the seller, citing a nondisclosure agreement it entered into at the seller's request.

There was concern last fall about limited liquidity in Ginnie MSRs. Since then there has been some improvement in that market, but "there is still a finite number of buyers in the Ginnie space for bulk deals," according to Mid America CEO Jeff Bode.

The company is active in the market for "scratch and dent" loans and more rarely will buy servicing rights.

With the addition of this transaction, Mid America holds $6.2 billion in total originated and purchased MSRs, Bode said.

For reprint and licensing requests for this article, click here.
MSR Secondary markets Subservicing Ginnie Mae
MORE FROM NATIONAL MORTGAGE NEWS