C-BASS to Buy Nonprime Lender
Credit-Based Asset Servicing and Securitization LLC - which is controlled by two mortgage insurance giants - has agreed to pay $260 million for Fieldstone Investment Corp., Columbia, Md., a publicly traded nonprime lender.
The purchase, once completed, will increase the servicing market share of Litton Loan Servicing, Houston, a C-BASS subsidiary.
Litton currently services $49 billion in subprime loans, ranking 10th in that niche with a market share of 3.84%. By adding Fieldstone's $5.7 billion in servicing, Litton will rank sixth with a 4.31% market share.
A non-depository, Fieldstone - which operates as a real estate investment trust - ranks 28th among subprime firms, according to the Quarterly Data Report. It ranks 24th among subprime lenders.
In December, National Mortgage News broke the news that Fieldstone was for sale.
C-BASS - a specialty servicer controlled by MI giants MGIC and Radian - said it would pay $5.53 a share for the mortgage banking REIT, which lost $37.2 million through the first nine months of last year. (MGIC recently said it would buy Radian.) (c) 2007 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com