Cherry Hill Mortgage Investment Corp. has received issuer and purchase approval from Ginnie Mae, allowing it to complete a previously announced deal with Freedom Mortgage.
Following this approval, Cherry Hill can acquire full mortgage servicing rights on loans that back Ginnie Mae securities. It is receiving these in exchange for the sale of its remaining excess MSRs to Freedom.
The approval also expands the market in which Cherry Hill can compete to acquire bulk offerings of MSRs moving forward. The transaction with Freedom will grow the company's total servicing portfolio to $7.7 billion in unpaid principal balance as of Jan. 31.
"We are pleased to receive GNMA approval, enabling us to complete the sale of our Excess MSR assets and more rapidly pursue our MSR strategy," Cherry Hill President Jay Lown said in a news release. "Further, we remain committed to maintaining the flexibility of our portfolio in our efforts to create additional value for shareholders."