MorVest Capital completes new MSR Credit Facility
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.
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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
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