Residential mortgage servicers are generally required to advance certain principal and interest payments, tax and insurance payments and other amounts to preserve mortgage properties under servicing agreements. These advancing obligations often require servicers (and investors in those servicers) to have substantial liquidity available. Residential mortgage servicers and those investors often obtain this liquidity under servicer advance financing transactions. Sidley is a market leader in representing clients in these often-complicated transactions.
Sidley’s experienced team has represented servicers, investors (including excess MSR investors) and lenders in a wide variety of highly sophisticated servicer advance financing transactions including recourse financings, limited recourse financings, Freddie Mac MSR advance financings, Fannie Mae MSR advance financings, Ginnie Mae MSR advance financings, private label securitization advance financings, and subserviced MSR advance financings.