A transaction involving the sale of mortgage servicing rights on nearly $3 billion in government loans, including past-due accounts, has closed.
The residential loans are either insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs.
Mortgages that are included in the portfolio, some of which are delinquent, have an aggregate unpaid principal balance of $2.7 billion.
Mid America Mortgage Inc., the buyer in the transaction, announced the sale Thursday.
“Mid America has achieved tremendous success in resolving delinquent government-insured mortgages,” Mid America Owner and Chief Executive Officer Jeff Bode said in the statement. “By purchasing this portfolio, and another like it, we are providing much-needed liquidity to smaller market players that might otherwise not have an outlet for their distressed servicing.”
The sale completed at the end of March, according to the Addison, Texas-based company.
Mid America said its sub-servicer will take possession of the MSRs on May 2.