Mortgage Industry Advisory Corp. (MIAC), a commercial loan valuation and brokerage firm, reports that it successfully auctioned two commercial servicing portfolios during the first quarter.
The first sale was a $43.4 million Ginnie Mae multifamily servicing portfolio for a national real estate lender. The portfolio comprised six fixed-rate loans with an average interest rate of 5.5% and average loan size of $7.2 million.
The second sale was a $600 million commercial mortgage-backed securities servicing portfolio, also for a national lender, MIAC says. That portfolio consisted of 57 fixed- and adjustable-rate loans with an average interest rate of 5.85% and a average loan size of $9.5 million.
According to the company, 12 bidders participated in the auction.
‘The commercial servicing market continues to demonstrate strong overall demand,’ says MIAC's managing director, Dan Thomas. ‘Although the credit crisis has depressed commercial real estate and loan values in the U.S. and globally, the market for all types of commercial servicing assets remains very strong.’
Thomas does not expect the demand for commercial mortgage servicing rights to slow, although he does note that a continued rise in involuntary prepayments would add volatility to the pricing equation, potentially stalling price increases.