Three pools of seriously delinquent mortgages with a total unpaid principal balance of $410 million will be auctioned off by Freddie Mac. The delinquent pools, with unpaid principal balances of $160 million, $141 million and $109 million, will be offered through Mission Capital Advisors, the broker in the deal, according to a Bloomberg report. Competitive bidding will end on Feb. 4. A large chunk of the loans are two years past due, the report noted. Freddie spokesman Tom Fitzgerald declined to provide further details, saying information at this stage of the deal is provided solely to prospective bidders. He said details on the results will be provided after auction. The transaction is the second of such sales for Freddie in ...
Two other servicing packages hit the market the past few days, including a seasoned $276 million Ginnie Mae portfolio from Interactive Mortgage Advisors.
The recent dip in interest rates has sellers of mortgage servicing rights questioning whether they should sell into a market of weakening prices or hang on until values firm up. As always, the answer depends on what type of servicing rights a seller is looking to unload in a market where the yield on the benchmark 10-year Treasury is once again nearing its low for the year. With rates low on current production, prices are...
Sales of mortgage servicing rights by big banks will continue to be driven by the desire to reduce the handling of delinquent mortgages – not by Basel III capital requirements, according to analysts at Moody’s Investors Service. Nonbank servicers that have grown in recent years often cite Basel capital requirements as a significant factor in bank sales of MSRs. Warren Kornfeld, a senior vice president at Moody’s, noted that Bank of America, Citigroup and JPMorgan Chase were active sellers of MSRs in recent years. “We believe the sales were primarily motivated by their desire to reduce credit-impaired servicing volume,” he said. Under Basel III, banks face...
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