eWarehouseOne, Newport Beach, Calif., is exploring the idea of financing the purchase of mortgage servicing rights, a business that has been mostly dormant during the housing crisis.
According to Anthony Simich, a division vice president for the warehouse firm, "It's not something we're doing now, but we're looking at it." He added, however, that "It's something we likely will do."
Financing is available for MSR acquisitions but on a limited basis, according to servicing advisors interviewed by National Mortgage News in recent weeks.
Traditionally, some warehouse firms have ventured off into this niche, but not lately.
"The whole problem with the business is valuing this highly volatile asset," said one advisor requesting his name not be used. He added: "Are servicing rights undervalued? I think so, but that doesn't mean it's easy getting a loan for them."
The privately held eWarehouseOne receives financing from private equity investors. According to Simich, who joined the company late last year, the firm has roughly $3 billion in outstanding loans.
