Whole Loan Capital (WLC), New York, is in the market with a $4.8 billion 'flow' servicing deal that will be sourced through a handful of different lenders.
WLC put together a small group of originators that are seeking better 'servicing released premiums' [SRP] in the secondary market. "About 90% of this will be retail based," said David Akre, founder and principal of WLC.
Akre is in the process of soliciting more originators to join his flow MSR consortium.
The $4.8 billion of MSRs are tied to Fannie Mae loans. The average loan size has been estimated at $255,000, the average LTV 68%.
Akre said SRP prices being offered today are way below where they should be. "Many originators of today are lamenting the value ascribed to their MSRs despite the very high credit quality of the loans and the likely path of future interest rates," he added.
In a statement the company said, "There has never a more critical time for MSR investors to think strategically about future business. The forced MSR selling of today will soon be a thing of the past," he said.
Until recently flow deals have been relatively rare, but more packages are starting to hit the market. The Prestwick Group, Alexandria, Va., is currently offering a $720 million flow package.