Fortress Winning Bidder on $50B of BoA MSRs?

Fortress Investment Group appears to be the winning bidder on a $50 billon package of mortgage servicing rights being peddled by Bank of America, according to industry analysts watching the deal.

At press time, media contacts and investor relations officials for both companies had not returned telephone calls about the matter. (B of A’s corporate headquarters was closed on Friday because of Veterans Day, but a telephone number for media relations was accepting calls.)

At least two other firms were looking at the B of A MSRs, including Bayview Financial.

The receivables are collateralized by mortgages originally funded by Countrywide Financial Corp. a few years ago and sold to Freddie Mac. B of A bought CFC in August 2008.

Early in the fall the bank sold a $70 billion package of MSRs to Fannie Mae, which in turn is processing the loans through a subservicing agreement with Green Tree Financial. To date, the GSE, Green Tree, and its parent, the publicly traded Walter Investment Management Group have declined to comment on the sale.

The $50 billion of MSRs being auctioned by B of A is considered “legacy” in nature with high delinquency rates.

The sale by B of A is another step in the bank’s plan to reduce its footprint in residential finance and servicing. 

Fortress controls Nationstar Mortgage, a subservicer/lender based in Texas.

Daily Briefing | Friday, November 11, 2011

  • REIT Industry Fears Mortgage Damage from SEC Rule

    The Securities and Exchange Commission could hurt the housing recovery if it imposes tighter restrictions on real estate investment trusts that purchase and securitize mortgages, according to industry comments filed with the agency.

  • Servicers Struggle to Create Foreclosure Remediation Plan

    Regulators have identified how borrowers may have been harmed by a multitude of foreclosure errors, but they are largely leaving it to the servicers and their consultants to figure out how to fix it.

  • GOP Wants to ‘Nationalize’ MERS

    A new Senate bill proposing to wind down the GSEs by at least 10% a year also includes a provision that would replace the private MERS System with an identical platform run by the Federal Housing Finance Agency — along with new national standards for mortgage title transfers.

  • D.R. Horton Profits Despite Mortgage/Housing Challenges

    Despite continuing housing market and mortgage-related challenges, builder D.R. Horton Inc. generated profits in its fourth fiscal quarter and full fiscal year ending Sept. 30 that improved upon the same quarter last year but were lower than FY 2010.

  • Ellie Mae Promotes Corr to COO

    Mortgage technology vendor Ellie Mae on Friday announced that it has promoted Jonathan Corr to chief operating officer.

  • Morgan Stanley Agrees to New Mortgage Servicing Standards in N.Y.

    The New York banking department has reached an agreement with Morgan Stanley to implement new mortgage servicing standards after signing a similar deal with Goldman Sachs in September.

  • GAO: Agencies Should Find Better Ways to Coordinate Dodd-Frank

    The numerous agencies involved in financial regulation should find better ways to coordinate with each other as they seek to implement the massive Dodd-Frank Act, according to a government watchdog report released Thursday.

  • B of A Settles Charges that it Illegally Foreclosed on Military Personnel

    Bank of America’s residential servicing department Friday entered into a settlement with the Department of Justice to reimburse members of the military whose homes were foreclosed on while they were on active duty.

Article source: http://www.nationalmortgagenews.com/dailybriefing/2010_474/fortress-winning-bidder-boa-msrs-1027423-1.html

Leave a Reply

WP2FB Auto Publish Powered By : XYZScripts.com
Bunk Beds