Phoenix Advises Netbank on Sale
Phoenix Capital is advising NetBank on the proposed sale of NetBank's servicing platform and servicing rights on a $13 billion portfolio of home mortgages.
A spokesperson for NetBank said Phoenix Capital has put together a book on the offering for prospective bidders. NetBank anticipates completing a transaction in the third quarter.
When NetBank announced its intention to sell the mortgage servicing platform earlier this month, the company said that it has had difficulty achieving its growth targets for the mortgage servicing asset.
NetBank said it had set a goal of growing the mortgage servicing asset to at least $25 billion, a level the company considered the minimum to rationalize its investment in servicing and have the servicing asset serve as an effective "macro hedge" against the mortgage production side of the business, according to NetBank chairman and CEO Douglas Freedman.
He said NetBank decided that under current market conditions, NetBank felt its capital could be better invested in other businesses. NetBank estimated the proposed sale will free up between $20 million and $35 million in risk-based capital. (c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com