Milestone Merchant Partners is circulating an offering book on $30.8 billion of mortgage servicing rights that once belonged to now-defunct Taylor, Bean & Whitaker, Ocala, Fla.
Servicing investors and advisors familiar with the deal said the MSRs are tied to mortgages guaranteed by Freddie Mac. The receivables have a 12% delinquency rate, said one source who has seen the offering book.
TBW’s assets are being supervised by a bankruptcy trustee.
Ocwen Financial and other specialty servicers are expected to be the target audience of the bid package.
The nonbank lender filed for bankruptcy protection almost three years ago. A year ago its longtime CEO, Lee Farkas, was sentenced to 30 years in prison for orchestrating a massive fraud tied to fabricating mortgage assets that didn’t exist. It then borrowed money against those nonexistent assets.
TBW’s failure also sparked the failure of its largest warehouse provider, Colonial Bank.