Early Thursday, EverBank disclosed that it is selling $13.4 billion of Ginnie Mae servicing rights, while transferring $6.9 billion in subservicing to Walter Investment Management Corp.
The long-rumored sale of roughly $60 billion in mortgage servicing rights by Flagstar Bancorp is likely to get signed in the fourth quarter, but the bank continues to be coy about which investor it’s negotiating with. According to servicing advisors familiar with the transaction, Two Harbors Investment Corp. has been talking to the thrift about buying MSRs, but at press time it was unclear if the real estate investment trust is the winning bidder on the deal. Officials from both firms declined to comment. Flagstar, in a recent earnings call, confirmed...
Moody’s believes the servicers’ transitions into mortgage originations was positive, but raised concerns about declining refinance opportunities, competition with banks and the potential for nonprime originations.
“Our concern is whether companies have the resources internally to ensure that such arrangements are working as they should,” said one Ginnie Mae official. “Is the issuer adequately protecting itself and Ginnie Mae?”
According to a copy of an early prospectus provided to IMF, lenders originating loans for the security include Nationstar Mortgage, Stearns Lending, Freedom Mortgage, Fifth Third Mortgage, Real Estate Mortgage Network and RMR Financial.
Citadel, which raised $200 million earlier in the year, has funded $18 million so far this year, but 40 percent of that has come in October. Eventually, it hopes to securitize its production.
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