Not only is PennyMac cranking up its correspondent lending platform, but the publicly traded REIT also plans to be an aggressive bottomfisher in the mortgage servicing rights arena.According to a recent investor presentation filed with the Securities and Exchange Commission, PennyMac said it now has the ability to scale its servicing platform up to $40 billion of “sub-performing” loans within 12 months.
The company, formerly known as PennyMac Mortgage Investment Trust, recently opened a new 142,000 square-foot office/servicing facility in Moorpark, Calif. The site can handle 1,000 employees.
“PMT will continue to pursue distressed whole loan investments, while also seeking new opportunities, such as MSRs,” the company says in the filing.The company did not disclose its MSR contracts in a recent earnings statement, but it's believed to be less than $4 billion.
It is still an active buyer of nonperforming mortgages. In the fourth quarter it reviewed $4 billion of whole loans.In other MSR news, the Prestwick Mortgage Group is offering investors a GSE 'flow' servicing arrangement that could be as large as $720 million per year in MSRs.The seller was not identified by name, but is described as a “well capitalized” mortgage banking firm based in the Mid-Atlantic region.
Flow deals – where an originator offloads MSRs monthly – have been somewhat rare the past few years.
The servicing market has been dominated by large bulk sales – usually involving legacy and problematic servicing rights.
The originator will sell anywhere from $20 million to $60 million per month in MSRs backed by Fannie Mae and Freddie Mac loans.
The servicing fee on the product is 25 basis points. The average projected loan balance is $210,000 to $230,000.
Almost all of the product is retail sourced. Bids are due in late March. Prestwick is based in Alexandra, Va.