May. 20 at 8:38 PM
$ABR
How the
$4.1M Fannie Mae deal helps ABR financially:
Upfront (at closing):
Gain-on-sale + origination fees: 1.5–1.9% margin →
$60K–
$75K
MSR capitalization (non-cash): 1.3% →
$53K
Recurring (long-term):
ABR retains servicing rights on Fannie Mae DUS loans.
Average fee: 0.355% per year →
$14,500 annually on this loan.
Over 6–10 years:
$80K–
$150K+ cumulative servicing income + escrow float.
Why it matters:
This feeds ABR’s Agency Business — the stable, low-risk side that generates
$129M/year in servicing revenue from its
$36.3B portfolio.
It complements their higher-yield bridge lending. Small deals like this steadily grow the servicing moat that supports dividends and valuation.
