The Mortgage Industry Advisory Corp. is marketing a $6.23 billion package of maintenance rights on behalf of an unnamed seller, in line with the recent trend of relatively larger offerings.
The portfolio of rights to certain cash flows on loans purchased from state-sponsored companies or found in Ginnie Mae securitizations is from a lender that issues mortgages with a strong California concentration and could be sold on a component basis.
Freddie Mac loan rights make up 58.04% of the package. Rights from Fannie Mae loans, where service providers have paid actual principal and interest (rather than scheduled P&I), account for another 34.62%. The rest comes from loans in securities that Ginnie insures.
The Golden State is by far the largest concentration of states in the portfolio at 56.10% (principal balance) and 49.29% (number of loans). Next largest is Washington at 12.27% and 12.02%. It is followed by Illinois (7.61% or 5.34%). The concentrations from the remaining countries involved are all below 5% on balance and counted.
The weighted averages of the package are as follows: credit age eight months; interest rate 3.02%; late payment rate 0.76%; and FICO credit score, 750. Average loan size is $353,763. The 30-day delinquency rate is 0.33%. Rights to loans that are more than 120 days late account for 0.15% of the portfolio. The delinquency rate for mortgages that are 60 days or more past due is 0.4%. The 90-day delinquency rate is also 0.4%. Historically, mortgages begin foreclosure after the three-month mark, but the percentage of loans that are more than 120 days past due has risen due to forbearance given to borrowers facing coronavirus-related hardships.
Written bids must be received by 5:00 p.m. on January 20.