$411B in Bulk Could Change Hands
Washington-Investors with an appetite for existing "bulk" servicing rights have plenty to choose from these days - thanks to the industry's troubles.
At last check, at least $411 billion in bulk rights could change hands in the next several quarters, including the $380 billion portfolio belonging to Residential Capital Corp., Minneapolis. Two other large offerings that are gaining attention include $20 billion in servicing rights belonging to the now-defunct AmTrust Bank of Cleveland and $11 billion in receivables from Thornburg Mortgage of Santa Fe, N.M.
ResCap is controlled by GMAC Financial Services, which, in turn, is majority owned by the U.S. Treasury. GMAC has made several moves to cleanup ResCap's balance sheet and it's no secret that a sale of all or part of the mortgage unit is under consideration. (GMAC has declined to talk specifically about ResCap except to say it is exploring "strategic options" in regard to the company.)
Among all residential servicers, ResCap ranks fifth nationwide. (ResCap continues to use the trade name GMAC Mortgage.) The company has a servicing market share of 3.82%, according to figures compiled by the Quarterly Data Report and Mortgage Servicing News.
The AmTrust portfolio will be offered for sale by the Federal Deposit Insurance Corp., which took control of the thrift in early December, selling most of its franchise to New York Community Bancorp. NYCB, however, did not want the servicing platform or the receivables.