A World Awash in MSR Deals? But Who Will Buy?

Interactive Mortgage Advisors is offering a $4.5 billion MSR package with another $1 billion in the works. Phoenix Capital is peddling $35 billion of MSRs for Bank of America – with more on that way. MountainView has a few offerings in the market place as well, as does Prestwick. And in a few weeks a $30 billion package from the bankrupt Taylor Bean & Whitaker will start making the rounds through Milestone. It would appear that if you're looking to buy MSRs – and can put up with the risks involved – you have plenty of product to choose from. Of course, the big question is price: just what type of bids will these problematic packages fetch? And what type of 'reps and warranties' will be given? One thing we know for certain: unlike in years past the megabanks will not be the buyers. Those days are over.