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Call Rights and Excess MSRs

Non-Agency Cleanup Call Rights

Ocwen had stated that they are turning to cleanup calls to generate profits in 2015. New Residential’s investor presentations clearly state that a core focus is on Non-Agency Securities & associated Call Rights. A cleanup call allows the calling entity to purchase the loans at par plus expenses, re-securitize the performing loans, work out the non-performers, and sell the REOs. With approximately $245-295 billion of call rights between NRZ and OCN ($95 billion – NRZ, $150-$200 billion – OCN), we thought it would be helpful to distribute a list of deals that are potentially eligible to called in 2015 (actual call eligibility can be found in each PSA). We include all deals with a current factor below 11% with many vital performance statistics, including updated FICO and recent BPO, if available. This spreadsheet should help you decide which deals make economic sense to be called. Based on our selection criteria, our list includes $67 billion in UPB across 1,947 trusts. As a further guide, we also provide these same performance statistics on the 60 deals that New Residential called in 2014.

Mortgage Servicing Rights: A primer on HLSS and Ocwen

  • Rights to MSR vs. Legal Ownership of MSRs

  • Servicing Fees (Base and Incentive):

  • Third Party Consents

  • Interest Rate Risk

  • Servicing Fee Split between Ocwen and HLSS

  • Ocwen Servicing Fee

As always, our goal is to educate and share information.

Contact us at 203-276-0672 to become a client and access all reports and attachments.

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