BSI Financial Services received a capital infusion for the subservicer to acquire mortgage servicing rights for its own account in order to offer its clients more liquidity for this asset.
The capital raise of $140 million from two undisclosed institutional investors was nearly three times the amount it targeted. BSI will source, perform due diligence and service the MSRs that will be acquired in partnership with these investors.
"With our new MSR acquisition capability we offer our existing subservicing clients as well as other lenders interested in selling servicing rights the value of convenience and liquidity," Gagan Sharma, BSI Financial president and CEO, said in a press release. "We now provide a connection to the capital markets in addition to our subservicing and other a la carte services."
The move allows existing BSI Financial clients to either subservice or sell their mortgage servicing rights to the company on a bulk or flow basis. They will get accelerated cash flow and reduced operating risk that can arise if they are selling their loans to aggregators.
BSI had been a small scale purchaser of MSRs since 2015 but began to ramp up its acquisitions starting in the later portion of 2018. The company currently subservices approximately $8.5 billion.
As part of its servicing capability, BSI offers investors a loan recapture origination service. This is backed by an artificial intelligence-driven engine that provides the BSI loan origination team predictive analytics. BSI will soon be adding this analytics capability to its subservicing as well.
