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The mortgage servicing rights (MSR) market is continuing to pump out new deals. <\/p>\n
Freedom Mortgage<\/strong>, one of the country\u2019s largest mortgage servicers, recently unveiled its second private-label offering this year backed by MSRs. <\/p>\n In addition, two mortgage advisory firms are out with three new MSR bulk-sales offerings involving agency loan portfolios exceeding $1.4 billion in value combined.<\/p>\n Mount Laurel, New Jersey-based Freedom Mortgage\u2019s latest private-label offering seeks to raise $300 million through the sale of interest-only notes backed by participation interests in Ginnie Mae MSRs. In April, Freedom Mortgage also launched a private-label offering involving a $350 million interest-only note offering backed by participation interests in its Ginnie Mae MSRs holdings.<\/p>\n Monthly valuations of the MSRs for both offerings will be performed by SitusAMC, Kroll Bond Rating Agency<\/strong> (KBRA) reports. SitusAMC supports more most of the country\u2019s largest MSR asset holders, including banks, mortgage banks and servicers, KBRA notes, and \u201cevery month, SitusAMC values approximately $5 trillion of MSRs and has traded more than $280 billion of MSR \u2026 since 2017.\u201d<\/p>\n As of the end of June, according to mortgage-analytics firm Recursion<\/a><\/strong>, Freedom Mortgage ranked as the sixth largest all-agency mortgage servicer in the country, with a 4.6% market share and some $380.3 billion in agency loans serviced. It ranked as the top servicer of Ginnie Mae<\/strong> loans, however, with a 12.5% market share and some $256.6 billion in loans serviced, according to Recursion\u2019s data.<\/p>\n MSRs gain value<\/a> as interest rates rise, in part because upward-bound rates cause mortgage refinancing to slow to a crawl. That reduces mortgage-prepayment speeds \u2014 increasing the effective long-term yield of the servicing rights tied to those loans.<\/p>\n Freedom Mortgage is not the only mortgage originator to tap the private label market seeking to leverage its MSR holdings. Subsidiaries of Westlake Village, California-based Pennymac Financial Services Inc. <\/a><\/strong>(PFSI), which ranks as one of the top five mortgage lenders nationally, this past June also unveiled private-label offerings seeking to raise more than $700 million in the debt markets through the sale of notes secured by MSRs.<\/p>\n The transactions include a note offering of $305 million sponsored by PFSI subsidiary Pennymac Mortgage Investment Trust<\/strong> that is \u201csecured by certain participation certificates relating to Fannie Mae <\/strong>mortgage servicing rights [MSRs],\u201d according to a filing by PFSI with the <\/a>U.S. Securities and Exchange Commission<\/a><\/strong> (SEC).<\/p>\n Another subsidiary of PFSI, Pennymac Loan Services LL<\/strong>C, issued a separate private-label issuance of participation certificates valued in total at $400 million. The notes are backed by Ginnie Mae mortgage-servicing rights, according to a presale report by KBRA. <\/p>\n Monthly valuations of the MSRs for both offerings will be performed by Denver-based Incenter Mortgage Advisors, <\/strong>KBRA reports. Incenter has managed more than $1.5 billion in MSR sales and purchases, according to KBRA.<\/p>\n MSR Bulk Offerings<\/strong><\/p>\n On another front, three new bulk MSR offerings for agency loan portfolios valued at some $1.48 billion are now in circulation with bids due in early August.<\/p>\n Alexandria, Virginia-based advisory and brokerage firm\u00a0Prestwick Mortgage Group<\/strong>, along with its strategic partner, San Diego-based\u00a0Mortgage Capital Trading<\/strong>\u00a0(MCT), recently released bid documents for an MSR offering involving a portfolio of 1,004\u00a0Fannie Mae<\/strong> loans valued at $409 million. Separately, Prestwick just released bid documents for an MSR offering involving a pool of 1,079 Fannie Mae and\u00a0Freddie Mac<\/strong>\u00a0loans valued at $257 million.<\/p>\n The seller for both deals is identified as \u201can independent mortgage banker.\u201d<\/p>\n In addition to the MSR offering being marketed by Prestwick and MCT, New York-based Mortgage Industry Advisory Corp.<\/strong> (or MIAC Analytics) recently released bid documents for an $816 million MSR offering involving a bulk Fannie Mae, Freddie Mac <\/strong>and Ginnie Mae loan-servicing portfolio composed of 2,400 mortgages. The seller is identified in bid documents as a \u201cmortgage company that originates loans with a concentration in California.\u201d<\/p>\n In early July, as the third quarter was kicking off, four mortgage-servicing rights (MSR) offerings for agency loan portfolios valued at some $3.7 billion<\/a> also hit the market. <\/p>\n Prestwick Mortgage Group and MCT released bid documents for two separate MSR offerings involving agency loan portfolios valued at $1.85 billion in total. In addition, Incenter Mortgage Advisors in July came out with two large MSR offerings tied to agency loan packages worth $1.84 billion.<\/p>\n Finally, on the last day of June, MIAC Analytics released bid documents<\/a> for an MSR offering it is brokering that exceeds $5 billion in value. \u201cMIAC Analytics, as exclusive representative for the seller, is pleased to offer for your review and consideration a $5.22 billion Fannie Mae, Freddie Mac and Ginnie Mae mortgage-servicing portfolio,\u201d the offering documents state. \u201cThe portfolio is being offered by a mortgage company that originates loans with a concentration in California.\u201d<\/p>\n MIAC also came out with two large MSR offerings earlier in June involving a $4.8 billion loan pool and a separate $816.7 million package, both composed of Fannie Mae and Freddie Mac loans.<\/p>\n The post Freedom Mortgage launches MSR-backed private-label offering<\/a> appeared first on HousingWire<\/a>.<\/p>\n