The Mortgage Industry Advisory Corp. is marketing a $6.23 billion package of servicing rights on behalf of an unnamed seller in line with a recent trend toward relatively larger offerings.

The portfolio of rights to certain cash-flows from loans purchased by government-sponsored enterprises or found in Ginnie Mae securitizations comes from a lender that originates mortgages with a heavy California concentration, and could be sold on a component basis.

Rights from Freddie Mac loans constitute 58.04% of the package. Rights from Fannie Mae loans, in which servicers have remitted actual principal and interest (rather than scheduled P&I), make up another 34.62%. The rest come from loans in securities that Ginnie insures.

The Golden State represents the largest state concentration in the portfolio by far at 56.10% (principal balance) or 49.29% (loan count). The next biggest one is Washington at 12.27% or 12.02%, respectively. It’s followed by Illinois (7.61% or 5.34%). The concentrations from the remaining states involved are all less than 5% by balance and count.

The package’s weighted averages are as follows: loan age, eight months; interest rate, 3.02%; delinquency rate, 0.76%; and FICO credit score, 750. The average loan size is $353,763. The 30-day delinquency rate is 0.33%. Rights on loans 120-plus days late constitute 0.15% of the portfolio. The delinquency rate for mortgages 60 or more days late is 0.4%. The 90-plus day delinquency rate also is 0.4%. Historically, mortgages start the foreclosure process after the three-month mark, but the percentage of loans that are 120-plus days late has grown due to forbearance extended to borrowers with coronavirus-related hardships.

Written bids must be received by 5 p.m. on Jan. 20.





Source link