An auction is being held for mortgage servicing rights on Government National Mortgage Association loans from a financial institution that failed last month.

An offering is being made on behalf of the Federal Deposit Insurance Corp. that includes MSRs on 540 Ginnie Mae loans with a collective unpaid principal balance of $73 million.

The FDIC is selling the MSRs as receiver for Guaranty Bank, which last month was closed down by the Office of the Comptroller of the Currency.

Source: Mortgage Daily