Roughly $25 billion of Freddie Mac servicing rights that once belonged to the now defunct Taylor, Bean & Whitaker Mortgage Corp. (TBW) could hit the market by summer’s end, according to officials close to the matter.
In a recent filing with the Securities and Exchange Commission (SEC), Freddie Mac – one of TBW’s largest creditors – said a settlement with the firm’s creditors’ committee has cleared the way for the MSRs to be sold.
The product is now being subserviced.
In the SEC filing, Freddie notes that the proposed settlement calls for a “minimum net sales price” on the MSRs of $185 million.
The package is being brokered through Milestone Merchant Partners, which has offices in Washington and Miami. An official at Milestone said he could not offer any guidance on the sale at this time.
One source familiar with the matter noted that the size of the offering could range between $25 billion and $30 billion in receivables.
TBW filed for bankruptcy almost two years ago, with its failure becoming the subject of a massive criminal probe which resulted in several convictions and guilty pleas. Although company executives fabricated its financial statements, the MSRs are in relatively good shape, said one analyst who has looked at the portfolio. “This could be a good value play for someone,” said the analyst, requesting his name not be used.
