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62 | Th e M Rep o RT O r i g i nat i O n s e r v i c i n g a na ly t i c s s e c O n da r y m a r k e t SECONDARY MARKET Department local eDition local eDition JPmorgan chase Paid more than Half of $4 Billion rmBs settlement The large bank is more Than halfway Through iTs obligaTions To consumers from a 2013 seTTlemenT. NEW YORK // JPMorgan Chase has paid more than half of a $4 billion settlement reached in November 2013 with the govern- ment over faulty residential mortgage-backed securities, ac- cording to a recent report by an independent monitor. Independent Monitor Joseph A. Smith, Jr., verified Chase's claim made in December that the bank had provided $2.24 bil- lion in consumer relief credit to 111,924 borrowers as of the end of the third quarter. Chase has until December 31, 2017—nearly three full years—to pay the ap- proximate remaining amount of nearly $1.8 billion of its obliga- tion toward consumer relief under the settlement. "After in-depth formula testing and data review, I have credited Chase with more than half of the $4 billion in consumer relief credit it must provide under this agreement," Smith said. "I look forward to reporting on my next round of testing mid-year. In addition to its consumer relief requirements, I have no reason to believe that Chase has failed to comply with any of the policy-based, non-creditable requirements of the settlement." The $2.24 billion in consumer relief with which Chase was officially credited has come in the form of principal reduction, loan modification, and refinancing for borrowers facing foreclosure. The breakdown of the $2.24 billion in consumer relief is as follows: $555.88 million in modification – forgiveness/forbearance, $791.76 million in rate reduction, and $898.04 million in low- to moderate-income and disaster area lending. In Smith's fourth report, Chase said it provided $5.1 billion in principal forgiveness and forbearance, rate reduction, and low- to moderate-income or disaster-area lending to 39,512 borrowers as of the end of Q 4. Chase also claimed 151,436 bor- rowers received some type of relief, including $1.95 billion in principal forgiveness or forbear- ance, $1.11 billion rate reduction, and $15.77 billion in eligible lend- ing. Those figures are awaiting validation from Smith. Chase settled with the gov- ernment in November 2013 for a then-record $13 billion amid claims the bank, along with Bear Stearns and Washington Mutual, sold faulty residential mortgage-backed securities to investors prior to the financial crisis. Chase was required to make $9 billion in direct pay- ments to government agencies in five states and provide $4 billion in consumer relief under the settlement. $10 Billion msr Portfolio Up for sale mounTainView is acTing as adVisory for The msr sale from a large, well- capiTalized bank. COLORADO // Denver-based res- idential mortgage servicing rights sales and valuation advisory services provider MountainView Servicing Group announced at the end of March it is acting as adviser for the sale of a Fannie Mae and Freddie Mac mortgage servicing rights (MSR) portfolio with an unpaid principal bal- ance (UPB) of about $10 billion. According to MountainView's announcement, features of the bulk servicing rights portfo- lio include 100 percent fixed- rate and first lien product, a weighted average original FICO score of 763, a weighted average original LTV ratio of 75 percent, a weighted average interest rate of 3.82 percent, and low delin- quencies. The portfolio contains no loans that are more than 90 days late; only 0.41 percent of the loans in the portfolio are between 30 and 59 days delin- quent, and only 0.5 percent of the loans are between 60 and 89 days delinquent, according to MountainView. The average loan size for the portfolio is $232,719, and the aver- age loan age is 24 months. Slightly more than one-quarter of the loans (25.5 percent) are located in California, followed by Colorado (11.8 percent), and Washington (6.5 percent). Bids are due on the portfolio by April 24. "This portfolio has a weighted average coupon of 3.82 percent, while a lot of the servicing portfolios that have recently come to market have had weighted average coupons above 4 percent," said Robert Wellerstein, managing director at MountainView Servicing Group. "And given the recent move down in rates, this portfolio gives buyers a rare opportunity to buy a large amount of discount and par rate servicing." The seller in the deal is a "well-capitalized bank" that wishes to remain anonymous, according to MountainView. The bank prefers to retain MSRs through a sale with a subser- vicing agreement, according to MountainView, but the bank will consider a traditional sale. The $10 billion portfolio is the 15th MSR portfolio MountainView has brought to market in 2015, according to a MountainView spokesperson. Based on the annual number of sales, MountainView usually ranks first or second in the nation, according to the company's announcement. During 2014, MountainView advised on 44 MSR portfolio sales involving a total of $43.5 billion of UPB. SECONDARY MARKET