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Irwin Unloading $14B in Servicing

Columbus, OH-Irwin Financial Corp. here is toying with the idea of selling $14 billion in servicing rights housed at its mortgage affiliate, investment banking sources told Mortgage Servicing News.

A spokeswoman for IFC declined to comment. In January, IFC said that it was exiting the conventional market by selling subsidiary Irwin Mortgage Corp., which is based in Fishers, Ind.

It now appears the bank is trying to cash in on higher interest rates which cause servicing rights to rise in value. (Presumably, its production network will be sold separately.)

IMC ranks 31st among residential servicers. The bank parent has been fielding offers for the unit and in February rumors began to surface that subprime giant New Century Financial Corp. might be the winning bidder.

(In February, IFC and New Century declined comment.)

New Century does not have much of a presence in the conventional market but is interested in broadening its menu base. About 90% of Irwin's production is sourced through loan brokers or correspondents. The mortgage division has 47 offices in 26 states.

Most of New Century's production is sourced through loan brokers as well.

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