A flow offering could work out to mortgage servicing rights on more than $1 billion in government-sponsored enterprise loans.
The future-flow-delivery offering involves MSRs on approximately 224 Fannie Mae residential loans for $75 million per month.
Although the minimum commitment is six months, the seller is hoping to enter into a 12-to-18-month
future flow delivery deal.
The offering was announced by Mortgage Industry Advisory Corp., the exclusive representative for the seller — “one of the largest home-building companies in the United States.”
On a weighted-average basis, the servicing fee is 0.25 percent, the FICO is 744 and the original loan-to-value ratio is 80.4 percent.
Nearly a third of the properties securing the loans are expected to be located in Texas, while more than a fifth are in Florida, nearly a fifth are in California, and 17 percent are in Arizona.
No other states have a double-digit concentration.
Thirty-year fixed rate loans are expected to account for 85 percent of the loans, while 15-year mortgages will represent nearly 7 percent, and adjustable-rate mortgages are anticipated to make up more than 8 percent.
The announcement indicated that the seller is very close to obtaining Freddie Mac approval.
“The seller will be providing full representations and warranties for the loans included in this offering,” MIAC said.
Bids for the MSRs are due by
July 12.
Interested parties should contact
MIAC Managing Director Dan Thomas at [email protected] or 212.233.1250 x240.
