MIAC puts over $6 billion in mortgage servicing rights in offering
The Mortgage Industry Advisory Corp. markets a $6.23 billion set of maintenance rights on behalf of an anonymous seller pursuant to a recent trend towards relatively larger bids.
The portfolio of rights to certain cash flows from loans purchased by government-sponsored companies or found in Ginnie Mae securitizations comes from a lender that issues mortgages with a high California concentration and could be sold on a basis of components.
Freddie Mac’s loan rights make up 58.04% of the package. Fannie Mae loan rights, in which managers handed over actual principal and interest (rather than expected P&I), account for an additional 34.62%. The rest comes from securities loans that Ginnie insures.
The Golden State represents by far the largest concentration of states in the portfolio at 56.10% (main balance) or 49.29% (number of loans). The second largest is Washington with 12.27% or 12.02%, respectively. It is followed by Illinois (7.61% or 5.34%). The concentrations of the other States concerned are all below 5% by assessment and counting.
The weighted averages of the envelope are as follows: loan age, eight months; interest rate, 3.02%; delinquency rate, 0.76%; and FICO credit score, 750. Average loan size is $353,763. The 30-day delinquency rate is 0.33%. Fees on loans more than 120 days past due constitute 0.15% of the portfolio. The delinquency rate for mortgages overdue by 60 days or more is 0.4%. The delinquency rate of more than 90 days is also 0.4%. Historically, mortgages begin the foreclosure process after the three-month mark, but the percentage of loans that are more than 120 days past due has increased due to abstention extended to borrowers having difficulties linked to the coronavirus.
Written submissions must be received no later than 5 p.m. on January 20.