The Mortgage Industry Advisory Corp. Provides $ 5.27 billion of service rights on behalf of an undisclosed seller for one of the first mass transactions in months.
The average credit balance is $ 117,064, and the retail Fannie Mae mortgages in the portfolio average 4.08% interest rate, more than four years of experience, 740 FICO credit score and a credit-to-value ratio of well below 80%.
The loans also have a default and foreclosure rate of 3.73%, which is made up as follows: 30 days, 1.82%; 60 days, 1.11%; 90 days, 0.19% and 120 days plus, 0.61%.
The largest geographic concentrations based on the number of loans are Texas, 10.4%; Florida, 6.13%; Illinois, 4.64%; California 4.34%; and Pennsylvania 4.28%. All mainland loans are registered with Mortgage Electronic Registration Systems.
The key figures for the loans in the MSR portfolio are current as of May 31.
The mass market for mortgage service rights froze early in the pandemic, and its fate became more complicated in May when Fannie Mae and Freddie Mac bought loans older than six months, citing uncertainties related to the corona virus and related issues economic effects since then discontinued older loans were underwritten.
While the absence of government-sponsored companies in the bulk loan market reduces the number of outlets they can sell to, banks and other investors may find the reduction in the number of buyers attractive as this limits competition.
Bids must be received by 5 p.m. Eastern time on July 21 and a sale date on August 31 are preferred. The date of the portfolio transfer is subject to the approval of investors and the deadlines for the transfer of subservices.
Cenlar is currently responsible for the maintenance of the loans. The associated notes and certificates are available in printed formats, and the rest of the documents are electronic image files.