• Dallas
  • Denver
  • Houston

News Room

October 20, 2016

By Paul Muolo
pmuolo@imfpubs.com

MorVest Capital is working on a roughly $5 billion sale of Ginnie Mae servicing rights through a negotiated transaction between two parties.

MorVest CEO David Fleig confirmed that talks are underway, but could not say more about the transaction. Fleig did note: “We are talking to other sellers about getting rid of Ginnie product.”

Selling Ginnie servicing rights is not an easy task these days thanks to high prepayment speeds and the fear that an FHA premium cut could be unveiled after the November election.

Back in August, Incenter Mortgage Advisors auctioned off one of the largest bulk packages of Ginnie Mae servicing rights in quite some time: An $8.87 billion pool of receivables with a weighted average interest rate of 4.23 percent.

This entry was posted in Uncategorized on October 20, 2016

September, 2016

Clients and Friends,

2016 to date has featured yet another significant bond market rally, accompanied by rapid prepayment speeds and painful mark-downs to the carrying value of MSRs. However, for many companies, this period has also been punctuated by robust origination volumes with solid profit margins. Many servicers we know are also becoming quite successful with recapture and some of the largest entities are reaping the benefit of MSR hedging programs. We frequently remind folks that the fair value accounting mark-downs of MSRs are non-cash entries, and work both ways – when rates rise MSRs are marked back up.

Liquidity remains an on-going issue for non-bank seller/servicers, particularly in the GNMA MSR space, where very few MSR lenders are willing to take the unlimited risk implied by language in the GNMA acknowledgement agreement. Rapid prepayment speed assumptionsand higher yield requirements from wary buyers have resulted in bulk market bids that fall well below book values, and therefore selling GMNA MSRs for liquidity has been a poor alternative in 2016.We have no quarrel with flow sales but don’t forget to factor in the lost benefit of the tax wedge when determining best execution. For larger GNMA servicers, alternative “financing” options may be available.

Even if traditional MSR financing is fully utilized, it typically comes with an advance rate of not more than 60% of fair value, leaving a material haircut to be funded by the servicer. In addition, we are observing more and more large non-bank servicers where the MSR asset is approaching or even exceeds net worth. This indicates the need to add to capital, likely best accomplished by issuing preferred shares or subordinated debt. Such an increase in the capital base should lead to the ability to add more relatively cheap MSR financing, permitting those that wish to do so to continue aggressively retaining MSRs. Therefore, while appearing to be expensive at first blush, if used properly the mezzanine financing can be quite accretive and certainly is cheaper than selling a minority equity stake.

With bulk bids at disappointing levels and other means of extracting liquidity available but limited, what is the correct assessment of MSR retention/ownership at this juncture? While no one can predict future interest rate movements, we continue to believe that MSRs represent a good value proposition. If rates rise, multiple expansion will occur. Even if rates don’t rise, the tax wedge combined with strong positive cash flows and improved customer retention combine to make retaining MSRs very attractive for firms that can figure out how to solve the liquidity challenge associated with sacrificing the SRPs on the loan sales.

If rates plummet to new all-time lows, then certainly MSRs are vulnerable to more mark-to-market pain, so be sure you are geared up for recapture, and if your portfolio is at 2X or more of annual production volume, take a hard look at adding some hedge protection. But keep in mind that MSR valuations are typically based on static interest rate assumptions, so only if the elevated prepayment speeds in recent MTMs become a reality over many years will the real value of the net cash flows be diminished as predicted by the valuation models. In other words, you will enjoy strong positive cash flow from recent vintage quality MSRs regardless of what the MTM requires to apply fair value accounting.

At Morvest Capital, our principal focus is on helping clients deal effectively with MSR ownership and associated liquidity issues. We have successfully assisted many clients with MSR financing. We have been successful with MSR auctions, private strategic MSR sales,EBO trades and other creative structures to extract liquidity from MSRs. Our MSR valuation services are performed using state-of-the -art tools and unmatched experience. We welcome the opportunity to visit with you on these subjects:

David Fleig, CEO 281-980-0757; dfleig@morvestcap.com

Chris Negri, Sales 303-918-9596; cnegri@morvestcap.com

John Sullivan, EVP, Valuation Services 972-315-0126; jsullivan@morvestcap.com

 

This entry was posted in Uncategorized on September 30, 2016

May 19, 2016

By Paul Muolo
pmuolo@imfpubs.com

Declining interest rates have thrown a monkey wrench into mortgage servicing sales this year, but investment bankers and advisors are seeing an increase in new auction notices of late, even though pricing remains muted.

Moreover, some market-makers expect an eventual boom – but only if interest rates would rise a bit and stay that way. “There hasn’t been a lot of activity of late,” said David Fleig, CEO of MorVest Capital, Sugar Land, TX. “But I know one thing,” he added, “there are a lot of nonbanks out there sitting on $10 billion or more in servicing rights these days.”

Fleig says that nonbanks – which have been gaining market share the past two years – eventually will move to convert some of their MSR assets into cash via bulk sales. “But what we need right now is an expansion in the multiple,” he said.

The “multiple” he refers to is the price paid on bulk and flow servicing deals, which fell after rates declined in late January and has more or less remained that way. According to Mark Garland, president of MountainView Servicing Group, Denver, buyers are being quite “rational” these days on what they are willing to pay. For the full story, see Inside Mortgage Finance.

This entry was posted in Uncategorized on May 19, 2016

March 14, 2016

By Paul Muolo
pmuolo@imfpubs.com

MorVest Capital, Dallas, which entered the servicing sales arena late last year, has hired industry veteran Chris Negri as its national sales director, IMFnews has learned.

Negri joins MorVest from Promontory Financial Group, where he served as vice president of strategic initiatives. Before that he was vice president of national sales for the LenderLive Network.

MorVest President and CEO David Fleig noted that Negri is a brand new hire and will help the firm compete against some of the more established advisory firms in the servicing sales sector.

To date, MorVest has brokered three servicing transactions totaling $2.5 billion. The advisory firm has represented sellers only, but may become a buy-side broker as well.

This entry was posted in Uncategorized on March 14, 2016

December 28, 2015

By Paul Muolo
pmuolo@imfpubs.com

MorVest Capital, Dallas, a new player in servicing sales, has closed on a $1.2 billion auction of Ginnie Mae receivables.

No purchase price was disclosed. Both the seller and buyer are banks, said MorVest President and CEO David Fleig. Fleig said he could not identify the parties at this time.

The sale was done in conjunction with Mortgage Banking Solutions, a Texas-based consultancy.  Fleig said he is already
working on MorVest’s second offering, which he describes as a “very clean Fannie Mae/Freddie Mac portfolio.”

The new offering is about $1 billion. MorVest hopes to complete the sale by the end of January.

This entry was posted in Uncategorized on December 28, 2015

MorVest Capital Says Recent Changes on FHA Loans Will Impact Mortgage Servicing Rights Fair Value

By Janice Sand on February 18, 2015 in National News

DALLAS, Texas /New York Netwire/ — MorVest Capital, LLC, a specialized investment firm focused on providing strategic capital and analytics solutions to the mortgage banking and residential finance industry, is drawing mortgage servicers’ attention to the impact two recent changes will have on mortgage servicing rights fair value for FHA loans.

“We prefer not to lead with the negative, but it is important for mortgage servicers to understand and respond to the changes recently implemented on FHA loans,” said John Sullivan, head of the firm’s Analytics Division. “Although the impacts are certain to be negative, steps can be taken to ameliorate them.”

According to Sullivan, one change is the reduced FHA annual Mortgage Insurance premium (MIP) of 50 bps, which will likely lead to increased prepayment speeds in certain vintages. In addition, Sullivan points out a “prospective” change to the treatment of Paid in Full (PIF) interest.

Historically, with exception of loans paid off on first business day of the month, servicers could charge borrowers for the entire month and pass that through to security holders (resulting in no shortfall exposure). Sullivan said the new rules work like a conventional mortgage, for which the servicer can only charge the borrower up through the date of payoff. Loans in Ginnie Mae pools are required to pass through a full month of interest to security holders.

“This will increase the interest shortfall exposure to servicers and will need to be baked into valuations,” Sullivan said. “The good news on this is that it is for loans closed after January 20, 2015, so it does not appear to have an impact on existing servicing rights.”

In order to maximize profitability and preserve expected MSR returns, Sullivan suggests servicers take actions to counterbalance potential negative fair value impacts, including, but not limited to:

* Analyze the impact of the MIP reduction to your existing portfolio and rank the borrowers from most-to- least likely to be incentivized by the MIP reduction. This will serve to prioritize refinance solicitations and better position preservation of that borrower through effective runoff recapture as opposed to exposing that income stream to competitive sniping; and

* Price the affect of the new PIF rules into pricing matrices and best execution models to help ensure achievement of desired returns.

Striving to address a funding gap for its clients’ MSR strategies, MorVest has collaborated with Customers Bank to create a long-term credit facility that allows mortgage companies not affiliated with a depository institution to aggressively retain MSRs. MorVest is the exclusive advisor to Customers Bank’s

$200+ million mortgage servicing rights (MSR) term lending program, and also invests as a principal, buying a participation in each MSR loan.

In concert with securing MSR financing, MorVest utilizes proprietary analytics models to project the impact of MSR retention for each client on future operating results and balance sheets, a unique benefit to these companies not available from competing lenders. The MorVest Capital analytics division provides independent MSR valuations, servicing brokerage and other risk management services to a growing stable of clients.

For further information about the impact of FHA changes on MSR strategies, call or write John Sullivan at 972-315-0126 or JSullivan@MorVestCap.com.

About MorVest Capital:

MorVest Capital, LLC is a Texas-based investment firm focused on providing capital and strategic solutions to the mortgage banking and residential finance industry.

The firm provides strategic advisory, debt and equity placement, and MSR valuation and brokerage services both for investors and operating mortgage companies. MorVest is exclusive advisor to Customers Bank (Nasdaq: CUBI) on its $200+ million mortgage servicing rights (MSR) term lending program. Its MorVest Analytics operation is a full service MSR advisor, providing its clients with portfolio valuation, hold/sell analyses and brokerage services.

Led by David Fleig: President/CEO, Stephen Hinckley: Chairman and John Sullivan: EVP/CFO, MorVest delivers investment advisory and capital management services pursuant to highly targeted mortgage banking and housing investments. Seasoned industry veterans Fleig and Sullivan have worked together as founding principals and operators in firms that employed successful niche industry investment strategies focused on warehouse lending and direct investment in MSR, generating excellent returns for their institutional and high net worth individual investors. Steve Hinckley is a former mortgage banking executive who has been in the private equity business for the past 15 years.

More information: http://www.MorVestCap.com/. Published on NewYorkNetwire.com Wed, 18 Feb 2015

This entry was posted in Uncategorized on February 18, 2015

Liquidity and Best Execution Strategies for Mortgage Servicing Retention

 

Feb. 10, 2015–Fleig, David; Sullivan, John

 

(David Fleig is CEO of Morvest, Houston, an investment firm focused on providing capital and strategic services to mortgage bankers. John Sullivan is president of MorVest Analytics, a division of MorVest Capital, which assist its clients with accumulation, disposition and management of MSR assets. The company’s web site is www.MorVestCap.com. This is Part Two of a series.)

 

In our previous contribution, we provided the historical perspective on why independent mortgage bankers began to retain mortgage servicing rights again a few years ago. While the economics of retaining MSRs are compelling and favorable tax treatment is available, a number of important considerations must be addressed to maximize opportunity for success. Our focus here will be addressing liquidity and refining best execution strategy, as one cannot be properly considered without the other. We will also mention a few other strategy issues important to firms retaining MSRs.

 

Let’s start with addressing liquidity. As cash margins contracted in the second half of 2013, many mortgage bankers that had been aggressively retaining MSRs began seeking financing, but options were limited. Several additional banks began offering such facilities in 2014 and quite a few facilities were closed and funded during the year. A few opportunistic hedge fund type entities also funded some large MSR loans, but at relatively high cost. Cash margins on loan originations and sales remain thin and consequently, independent mortgage bankers (those not affiliated with a bank) wishing to retain MSRs in 2015 are faced with potentially significant liquidity concerns.

 

We expect a flurry of MSR finance activity in Q1 2015, as mortgage bankers typically focus on strategic planning this time each year. This will include firms finally obtaining their first MSR facility, and others expanding on existing capacity. MSR financing is not nearly as homogeneous as warehousing.

 

Here are some pointers when considering providers:

 

• Focus on obtaining a facility that permits you to draw funds as needed over the next year or even longer before the loan “terms out.”

 

• Avoid facilities that mature in one or two years in favor of one that better matches the duration of your MSR asset. Don’t bet your business on some bank renewing a facility, regardless of how attractively priced the money appears to be. What if that loan officer leaves or the bank is purchased by an institution not interested in MSR lending exposure?

 

• Carefully review the margin call provisions of the MSR loan agreement and seek a bit of cushion before a cash payment would be required. How will fair value be determined? Also, drawing down less than the maximum available under the facility will also provide some cushion should rates drop significantly after draws are made.

 

• Don’t forget to consider whether the lenders offer compensation for your custodial bank account balances.

 

While MSR financing arrangements may represent the cheapest way to address liquidity, other avenues of adding cash may be available and necessary. For one thing, the advance rate on MSR facilities is not likely to exceed 60 percent of fair value and in many cases may only be 50 percent. Further, for firms with less than $10 million net worth, MSR financing is likely not available at present.

 

Finally, even the largest independent mortgage firms may need to add to their capital stack to convince their existing MSR lender to add capacity to their line, particularly if the MSR asset exceeds total net worth. We believe the best alternative for such companies will be adding mezzanine capital, either subordinated debt or preferred stock. While more expensive than MSR debt, mezzanine capital is still far cheaper than equity and thus should be accretive.

 

Now let’s move on to refining your best execution strategy. This exercise requires fairly intensive analytics and access to sophisticated modeling tools. The following are its key components:

 

• Pro-forma modeling to understand the future income statement and balance sheet impacts of servicing retained vs. release strategy adopted.

 

• Retain vs. Release Analysis. Compares economic cash flows to market cash flows.

 

• Initial Capitalization Analysis. Requires matrix which considers relevant factors such as loan size, geography, term structures, product types and par rate adjusters.

 

• Incorporate above into best execution models to maximize gain on sale and retained MSR intrinsic value.

 

For those that have not yet begun to retain servicing rights, it is very important to engage in a pro-forma exercise to estimate the impact of this decision on financial performance. It is a healthy exercise for all firms which retain MSRs to develop projected income statements and balance sheets under a variety of “retain vs. release” scenarios. This will provide more insight into the magnitude of liquidity considerations and the impact on financial covenants with counterparties, better preparing your organization to successfully navigate your business plan. Another key component of the pro-forma exercise is rate shock analysis, which will quantify the impact of rate movements on operating results and better understand how the mix of servicing and production impacts financial results.

 

To successfully accomplish best execution on new production it is important to integrate a more sophisticated calculation of MSR fair value into your overall loan sales strategy. Many participants use an average MSR value which can result in misleading results. All servicing is not created equal and it is important to consider characteristics surrounding each loan such as loan size, loan type, term structure, product type, geography, LTV, credit quality at a minimum. All of these factors weight into the accumulation of MSR fair value in the marketplace.

 

When considering these factors up front, you are better able to fine tune which loans make sense for you to retain vs. release, enhance bottom line results and avoid unwanted surprises when subsequent mark-to-market analysis is completed. Today’s systems are sophisticated enough to integrate a more granular level MSR component when selling loans into the secondary market (whether delivered to aggregators or directly to the GSEs). To accomplish this, an MSR pricing grid with an appropriate level of detail should be obtained from a reputable source.

 

Beyond addressing liquidity and refining best execution, here are a few other things to consider as you think about your MSR retention plan for 2015:

 

• Containing Cost to Service. Broadly this can include automated systems, process refinement, outsourcing and personnel if you are servicing in-house. Subservicers typically have a fixed base cost per loan, but charge extra for delinquent and defaulted loans. Regardless of whether you service loans in-house or not, loan type and delinquency performance will have a profound impact of your servicing cost, and therefore the profitability of your MSR asset. For example, high LTV government loans are going to be more delinquent and costly to service than low LTV conventional loans. The more these factors are considered in your initial capitalization analysis (above) the better your MSR portfolio performance and valuation will be.

 

• Recapture. All portfolios experience runoff and depending on the interest rate environment, refinance activity can represent a material portion of total runoff.  Lower runoff means more cash flows, which translate into a higher return on your asset. Successful managers of their servicing portfolio find ways to refinance their existing borrows and hence preserve cash flows thus enhancing the yield recognized.

 

• Hedging the MSR asset. Opinions vary but once the MSR asset UPB exceeds total annual production, consideration should be given to hedging, and once UPB exceeds 2X annual production, it becomes a very critical consideration. Hedging done right will greatly reduce impairment risk, P&L volatility, but will likely also introduce additional liquidity demands due to the potential for margin calls.

 

(The views expressed in this article do not necessarily reflect policy of the Mortgage Bankers Association, nor does it connote an endorsement of a specific company, product or service. MBA NewsLink welcomes your submissions; articles and/or Q/A inquiries should be sent to Mike Sorohan, editor, at msorohan@mortgagebankers.org.)

 

This entry was posted in Uncategorized on February 11, 2015

2015: The Year to Refine Mortgage Servicing Rights Retention Strategy

Jan. 13, 2015–Fleig, David

(David Fleig is president and CEO of Morvest, Houston, an investment firm focused on providing capital and strategic solutions to mortgage bankers. MorVest arranged long-term mortgage servicing rights credit facilities for a number of mortgage bankers in 2014; its Analytics Division provides MSR valuations and brokerage services for mortgage banking clients. For more information visit www.MorVestCap.com and/or reach him at DFleig@MorVestCap.com.)

Following the financial crisis and for the first time in nearly two decades, it has again become compelling for independent mortgage bankers to retain mortgage loan servicing rights. It is useful for mortgage bankers to understand both the reasons for and the opportunities inherent in the current environment.

Let’s start with the recent developments favoring MSR retention. Due to an attrition of competition and the contraction in mortgage lending by the majority of the big bank “aggregators”, cash margins in the mortgage industry became historically high for a few years, peaking in 2011 through early 2013. Contributing to the significant aggregator contraction was the Basel III international banking accord, which contains harsh capital treatment for MSRs exceeding certain capital thresholds.

When the big aggregators began to pay their correspondent lenders significantly less in terms of servicing release premiums, many of the mortgage bankers with GSE Seller/Servicer approvals seized the opportunity to retain MSRs rather than give them away for significantly less than fair value.

During this period of fat cash margins mortgage bankers could forgo the SRP and retain the MSRs without creating a liquidity crunch. GAAP accounting rules provide for the capitalization of retained MSRs with a credit to current earnings, so net income doesn’t suffer as the result of retaining MSRs. And the really sweet bonus is that the income associated with MSR retention is backed out for Federal income tax purposes.

However, despite the compelling economics and tax treatment, a meaningful percentage of mortgage bankers eligible to retain servicing did not choose to do so. That was perhaps because the industry is a “generation” removed from most mortgage bankers owning MSRs and due to staffing requirements related to performing the servicing responsibilities (solved by most by hiring a subservicer). Also a concern for some is that MSRs are a volatile asset with impairment charges hitting current earnings if mortgage rates decline significantly.

Then things really changed. Comments by then-Federal Reserve Chairman Bernanke in April 2013 that quantitative easing was coming to a close rocked the bond market and cash margins in the mortgage business contracted significantly back to, or below, long-term historical averages. Consequently, independent mortgage bankers (those not affiliated with a bank) wishing to retain MSRs going forward were faced with potentially significant liquidity concerns, a condition which persists today.

Firms dedicated to building an MSR portfolio addressed this liquidity issue by seeking financing for their MSRs; although to date, only a handful of banks have stepped up to provide such facilities. Nonetheless, borrower demand was met in a meaningful way in 2014 as quite a few companies were able to close on credit facilities secured by a pledge of their MSRs.

During 2014, we saw a number of mortgage bankers come to realization that best execution continues to mean selling direct to the GSEs and retaining MSRs, and these firms have begun to execute on this strategy. Most firms already well into retaining MSRs coming into 2014 have continued to aggressively retain MSRs and look to do so in 2015.

Now, for the important question: If you are still sitting on the fence regarding MSRs, have you missed the opportunity? No, not in our opinion! However, a number of important things should be addressed to maximize the opportunity for success. These include:

• Refine your best execution strategy. All MSRs are not created equal in terms of market value; loan size, product type, term structure and geography influence values among other variables. Seek assistance from a qualified advisor.

• Decide which GSE(s) you want to deal with as an MSR owner. FNMA, FHLMC and GNMA all approach the pledge of MSR differently and the required acknowledgement agreements (tri-party agreement between the mortgage banker, the MSR lender and the GSE) can be a major impediment to securing the financing. FNMA as been the most “user friendly” to date. You should know this world is in flux as we enter 2015, with financing against GNMA collateral very difficult to obtain at the close of 2014.

• Hire a subservicer. However, understand that subservicing is not “high touch” and you must have on staff at least a few folks with servicing expertise to monitor the subservicer and supplement their efforts. Seek to retain control over placement of your custodial cash balances (some subservicers insist on controlling where escrow funds are on deposit).

• Arrange financing. Focus on obtaining a facility that permits you to draw funds as needed over the next year or even longer before the loan “terms out”. Avoid facilities that mature in one or two years in favor of one that better matches the duration of your MSR asset. Don’t bet your business on some bank renewing a facility, regardless of how attractively priced the money appears to be. What if that loan offer leaves or the bank is purchased by an entity not interested in MSR lending exposure?

Finally, carefully review the margin call provisions of the MSR loan agreement and seek a bit of cushion before a cash payment would be required.

The return to MSR retention strategies signals the reconstruction of a 360 degree mortgage banking ecosystem, arguably the most sustainable and ultimately the least risky model for the industry. Participating mortgage bankers can expect some short-term challenges, but they will also experience benefits with long-term potential, not the least of which is access to capital resources to support growth and weather the ebbs and flows of business. It is worthwhile to learn more about these new opportunities.

In a subsequent contribution here, we will take a more in depth look at these strategies for success in MSR retention, including the role played by analytics in plotting a course.

(The views expressed in this article do not necessarily reflect policy of the Mortgage Bankers Association, nor does it connote an endorsement of a specific company, product or service. MBA NewsLink welcomes your submissions; articles and/or Q/A inquiries should be sent to Mike Sorohan, editor, at msorohan@mortgagebankers.org.)

 

 

This entry was posted in Uncategorized on January 15, 2015

FOR IMMEDIATE RELEASE

MorVest Capital Completes New Mortgage Servicing Rights (MSR) Credit Facility, Adding to its Market Leading Total

DALLAS, TX, November 19, 2014 –MorVest Capital (www.MorVestCap.com), in concert with its funding partner Customers Bank (NASDAQ: CUBI), today announced that this week it has closed another mortgage servicing rights (MSR) credit facility for a Virginia company, adding to its growing tally. MorVest Capital, LLC is a boutique investment firm primarily focused on providing capital and strategic solutions to the mortgage banking and residential finance industry.

Striving to address a funding gap for its clients’ MSR strategies, MorVest has collaborated with Customers Bank to create a long-term credit facility that allows mortgage companies not affiliated with a depository institution to aggressively retain MSRs. MorVest is the exclusive advisor to Customers Bank’s $200+ million mortgage servicing rights (MSR) term lending program, and also invests as a principal, buying a participation in each MSR loan.

MSR financing facilitated by MorVest Capital through Customers Bank is the only MSR lending program currently offering the longer term financing (5 to 7 years) that more closely matches the duration of the MSR asset. This type of MSR financing closely resembles permanent capital, but at a much lower cost, making it highly accretive. Terms can be customized to provide the best solution for each borrower’s unique situation.

“We are currently working with several companies seeking to secure such financing in Q4 so that they can continue to aggressively retain MSR in 2015 when delivering loans to the GSEs,” MorVest CEO David Fleig said. “Our firm’s collective real-world MSR expertise uniquely positions MorVest Capital to help mortgage bankers secure the liquidity critical for them to maximize best execution and build a profitable servicing portfolio.

“Those client firms which were approved by Customers Bank for MSR facilities earlier this year have been drawing-down on them recently with an eye on projected liquidly for year-end balance sheets. Our existing borrowers have made quite a few draws in the past several weeks,” he said.

In concert with securing MSR financing, MorVest utilizes proprietary analytics models to project the impact of MSR retention for each client on future operating results and

balance sheets, a unique benefit to these companies not available from competing lenders. The MorVest Capital analytics division provides independent MSR valuations, servicing brokerage and other risk management services to a growing stable of clients.

- more -

About MorVest Capital

MorVest Capital, LLC is a Texas-based boutique investment firm primarily focused on providing capital and strategic solutions to the mortgage banking and housing industry. The firm provides strategic advisory, debt and equity placement, and MSR valuation and brokerage services both for investors and operating mortgage companies. MorVest is exclusive advisor to Customers Bank (Nasdaq: CUBI) on its $200+ million mortgage servicing rights (MSR) term lending program.

Led by David Fleig: President/CEO, Stephen Hinckley: Chairman and John Sullivan: EVP/CFO, MorVest delivers investment advisory and capital management services pursuant to highly targeted mortgage banking and housing investments. Seasoned industry veterans Fleig and Sullivan have worked together as founding principals and operators in firms that employed successful niche industry investment strategies focused on warehouse lending and direct investment in MSR, generating excellent returns for their institutional and high net worth individual investors. Steve Hinckley is a former mortgage banking executive who has been in the private equity business for the past 15 years.

MorVest employs a merchant banking approach, investing as principals in portfolio companies alongside its investors. In addition to MSR financing, MorVest is capable of other debt placements for well managed companies with solid track records and proven strategies. MorVest Analytics is a full service MSR advisor, providing its clients with portfolio valuation, hold/sell analyses and brokerage services.

For details about how MorVest Capital can support and advance your MSR strategies, contact: David Fleig at 281-980-0757 or DFleig@MorVestCap.com

# # #

Contact Info:

Kerri Milam

Depth Public Relations LLC 301-337-8477

Kerri@DepthPR.com

 

This entry was posted in Uncategorized on November 21, 2014

IMFnews

Tuesday, Mar 4, 2014

By Paul Muolo

pmuolo@imfpubs.com

Customers Bank, Wyomissing, PA, has launched a new program that will provide buyers of mortgage servicing rights with what it calls “longer term” financing. The bank’s advisor on the program is MorVest Capital, which has been working on the concept for at least two years.

According to materials provided to IMFnews, the term loans run from five to six years. MorVest President David Fleig said the program will provide liquidity “critical for mortgage bankers not affiliated with a depository institution to maximize best execution and build a servicing portfolio.”

In addition to its advisor role, MorVest will purchase a participation in each MSR loan made by Customers Bank. Over the past two years, banks have been more willing to lend against MSRs, but mostly in the form of working capital loans that usually expire within a year.

Tom Piercy, managing member of Interactive Mortgage Advisors, said he is pleased “to see this type of structure for MSR financing entering the market” but noted that the loan program “is not for everyone and the lender will not approve everyone.” For now, Customers Bank has committed at least $200 million to the effort.

This entry was posted in Uncategorized on March 14, 2014