Mortgage Industry Advisory Corp. put up $1.1 billion in Ginnie Mae-backed non-performing mortgages for sale, its second such offering this year.
Nearly half, or 49%, of the entire pool comes from six states of California, New York, Florida, Texas, Maryland and New Jersey. The weighted average coupon rate is 4.145%. The 4,512 loans are offered by an undisclosed seller.
The total outstanding balance of all loans for sale equals just over $1.1 billion, with an average size of $246,768. Last month, MIAC also announced the sale of a $126 million package of full loans to Ginnie Mae, the majority of which are from Louisiana.
Repairers sometimes choose to sell seriously overdue or non-performing products, ginnie mae– securitized loans backed by the Federal Housing Administration and the Department of Veterans Affairs to reduce interest payments, which they are still responsible for when their client misses payments. MGIC’s announcement comes as the overall mortgage default rate across the country showed encouraging signs in January, falling back to near pre-COVID lowsaccording to Black Knight.
The amount of loans seriously overdue for more than 90 days also fell 9% between December and January, a potentially promising signal of reperformance after federal financial protections offered to homeowners began to expire last summer. But the total number of loans that are now seriously delinquent still exceeds their pre-pandemic volume by nearly half a million.
A more worrying signal came from the number of borrowers who moved into early delinquency, which rose slightly, according to Black Knight. Separate search from the Federal Reserve Bank of Philadelphia revealed that nearly 200,000 severely delinquent borrowers with FHA and VA-backed loans in current loss mitigation plans were still missing payments.
MGIC has indicated a buyback date of April 29, 2022, with sales closing on May 2. The service transfer date is currently scheduled for June 15.