Hunton & Williams’ Structured Finance and Securitization Practice was recently featured in Inside Mortgage Finance. The article, “Private-Equity Funds and REITs Showing Interest in Financing Mortgage Servicing Rights”, highlights recent trends and developments in financing mortgage servicing rights (MSRs).

Investors are increasingly interested in financing mortgage servicing rights and investing in excess servicing spread strips. Private-equity funds and real estate investment trusts have focused their MSR financing efforts on agency servicing rights, and the agencies have been more receptive to such financing in recent years.

The article highlighted several innovative transactions in which Hunton & Williams advised numerous fund investors and REITs on excess spread investments through private equity and lending structures, and several servicers in connection with joint ventures to facilitate investments in servicing cash flow. Hunton & Williams also represented lenders and borrowers on several loans secured by servicing rights and pools of excess MSR spreads.