Caliber Home Loans Announces Pricing of Term Notes Secured by Ginnie Mae MSRs and ESS

COPPELL, Texas, May 9, 2018 /PRNewswire/ -- Caliber Home Loans, Inc. ("Caliber" or "the Company"), the nation's fourth largest nonbank residential mortgage originator with approximately $44 billion in 2017 originations and a servicing portfolio in excess of $130 billion, has priced a private offering of secured term notes in an aggregate principal amount of $325 million to be issued by the Company's subsidiary, CHL GMSR ISSUER TRUST (the "Trust").

Notably, this structure is the first Ginnie Mae Mortgage Servicing Right (MSR) - backed term note issuance to include a subordinate class, which provides Caliber access to additional financing for MSR portfolio growth not previously available within the industry. The issued notes are floating rate and carry the lowest cost of funds to date for Ginnie Mae MSR - backed term notes.

The secured term notes will mature on May 25, 2023, and are collateralized by Ginnie Mae MSRs and excess servicing spread (ESS) evidenced by participation certificates, which are sold to the Trust by Caliber under a master repurchase agreement. This funding is the final step in Caliber's balance sheet restructuring. As a result of this process, Caliber now partners with multiple partners and facilities that expand the Company's MSR financing capacity by over 30 percent, lower MSR secured interest expense by over 300bps and extend duration by an average of three years.

"We appreciate the support from our capital providers and Ginnie Mae on this issuance," said Caliber CEO Sanjiv Das. "Caliber remains focused on responsibly expanding its Retail and Servicing platforms and driving innovative industry thought leadership. This transaction will allow us to continue to address the financing needs of homeowners across the country and demonstrates that there is robust investor appetite for financing MSRs serviced by Caliber Home Loans. Securing financing from a broad group of capital market investors provides us with term capital that will be used for immediate growth in loan originations in addition to reducing costs relative to our existing financing."

About Caliber Home Loans, Inc.
Caliber Home Loans, Inc. (NMLS ID# 15622) is a privately-held financial services company with headquarters in Coppell, TX. The company is an approved Seller/Servicer for both Fannie Mae and Freddie Mac, an approved issuer for Ginnie Mae and is an approved originator and servicer for FHA, VA and the USDA. The company carries multiple servicer ratings from Standard & Poor's, Moody's, Fitch and DBRS. To learn more about Caliber, visit www.caliberhomeloans.com.

Media Contact
Rob Cushman
SVP, Marketing and Corporate Communications
[email protected] 
469-912-3253

SOURCE Caliber Home Loans, Inc.

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http://www.caliberhomeloans.com