Two packages of Fannie Mae mortgage servicing rights totaling $395 million were sold through advisory firm MountainView Servicing Group at the end of March.
The first $251 million package contained mostly prime 30-year and 15-year fixed-rate mortgages with an average coupon of 3.93%. Most of the collateral sits along the West Coast.
The second $144 million of MSRs were mostly 30-year fixed home loans with an average 4.05% coupon. The underlying properties were spread out across the nation.
MountainView, which advises independent mortgage companies, banks and thrifts on selling these rights, said both packages were sold without splitting the seller and servicer representation and warranty claims.
Allowing the rep and warrant risk to travel with the MSRs sparked a boom in sales this year.
MountainView would not name the sellers and buyers in the deals, but it noted demand is high for traditional MSR deals. These two packages were sold below the industry consensus MSR fair-value levels but still held a price above what the banks would have gotten had they sold to aggregators, MountainView said.
“The $144 million package was the third transaction between the seller and buyer,” said Robert Wellerstein, managing director at MountainView Servicing Group. “This national buyer is looking to partner with a handful of independent mortgage banks in purchasing packages of Fannie Mae or Freddie Mac MSRs on a flow or forward bulk basis.”
