Walter Increases Servicing Revenue, Offers Details on ResCap Deal
Walter Investment Management posted strong servicing results in the third quarter while revealing that it will take control of $50.4 billion of Fannie Mae mortgage servicing rights when the Residential Capital Corp. deal closes.
Walter, which partnered with Ocwen Financial on the ResCap transaction, said the receivables will cost the firm $540 million but it will also have access to $183 million of advance money.
Ocwen is a subservicer for Fannie’s chief competitor, Freddie Mac.
Overall, the Tampa, Fla.-based Walter posted net income of $6.4 million in 3Q compared to a $65.8 million loss in the same period a year earlier.
Its servicing revenue increased to $101 million during the period, a 15% improvement.
Walter, which also owns Green Tree Servicing, is in the process of securing a $600 million credit facility through its bankers, Credit Suisse and Morgan Stanley.