Incenter markets $6.3 billion in mortgage servicing rights

Incenter Mortgage Advisors is marketing a $6.3 billion bulk package of servicing rights with a weighted average loan age of 12.8 months, which will go up for bid next month.

The bulk package offered on behalf of an unnamed independent mortgage bank is associated with retail loans purchased by government-sponsored enterprises Fannie Mae and Freddie Mac.

The relatively large deal reflects a recent uptick in MSR market activity driven by relatively higher interest rates as Federal Reserve officials have registered concern about inflation that could lead them to tighten monetary policy. When rates rise, some lenders seek to retain more servicing as a natural hedge to declining origination profits, while others sell it to raise cash as their margins thin.

Other weighted averages for the bulk portfolio that is currently up for sale include a 2.94% coupon and 768 credit score. The average size of the loans associated with the package is $319,889. None of the loans are delinquent or in foreclosure. The estimated 12-month escrow amount as a percentage of principal is 0.70%.

The largest geographic concentration is in Texas, where more that one-third of the properties securing the related mortgages are located, based on both loan count and size. Other double-digit concentrations are found in Washington (16.7% by current balance, 12.8% based on loan count), and Colorado, (15.3%, 14.9%, respectively.)

Bids must be emailed to IMA by 2 p.m. Mountain time on Dec. 1.

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