Morgan Stanley Co. this week took bids on its residential servicing division, Saxon Mortgage, Ft. Worth, Texas, which holds $28 billion of contracts on its books, according to MA officials.
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Morgan, which declined to comment on the matter, bought Saxon about six years ago during the height of the subprime boom.
Mortgage banking officials noted that the investment banker has been trying to sell Saxon (on and off) for most of the past year with little success to date.
Saxon is a specialty servicer with roughly $18 billion of subprime MSRs on its books, according to figures compiled by National Mortgage News and the Quarterly Data Report.
Ocwen Financial Corp., which recently bought Litton Loan Servicing from Goldman Sachs Co., has been mentioned as a possible bidder for Saxon. Ocwen does not comment on merger and acquisition rumors.
Daily Briefing | Friday, September 9, 2011
MGIC Wants to Shed Units
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Obama Refi Plan Details Coming Later This Month
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PHH Servicing Production Cheaper Than Buying
PHH Corp., Mt Laurel, N.J. is the only independent mortgage loan servicer that can internally generate new unpaid principal balances for its platform and thus its loan production unit can generate MSRs at a discount compared to the cost to purchase them, an analyst for Sterne Agee said.
Freddie Won’t Fire Sale Foreclosed Homes
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Senate Panel Passes Flood Extension
The Senate Banking Committee last this week approved a bi-partisan bill to reform the National Flood Insurance Program, extending it out for five more years.
Warren Keeps Up Pressure in CFPB Fight
Elizabeth Warren has headed back to Massachusetts, but she remains engaged in the partisan fight in Washington over the Consumer Financial Protection Bureau.
Title Insurers Look to Cost Cutting
The presentations of three national title insurance underwriters at the Keefe Bruyette Woods insurance conference held on Wednesday concentrated on the importance of focusing on profitability in the current real estate market, analyst notes said.