RBC Won't Keep Sterling's Servicing
The acquisition-hungry RBC Mortgage Co., Chicago, has acquired Sterling Capital Mortgage Co. here and its servicing platform - but not the company's receivables.
A spokesman for SCMC's bank parent told Mortgage Servicing News that Sterling's receivables are being sold in pieces to different investors.
"Some of the deals have closed, while others have not," the spokesman said.
Sources say that one of the buyers is HSBC Mortgage, Depew, N.Y., a top 20-ranked servicer. HSBC, meanwhile, declined to comment.
As this monthly newspaper went to press, the spokesman, however, could not provide a size on the SCMC portfolio.
What exactly RBC will do with the servicing platform is unclear.
In early October, RBC president Dave Matthews said all of his company's servicing is housed in RBC's bank affiliate in North Carolina. At midyear, RBC had about $9 billion in servicing rights.
Mr. Matthews indicated that the company would not be growing its servicing operation much, but then again, Mr. Matthews resigned from RBC just as MSN was going to press.
RBC paid $100 million for Sterling Mortgage, a mostly retail-based lender and servicer.
Mr. Matthews told MSN that "there's a fair amount for sale right now" but cautioned that RBC will be a selective buyer only.
Mr. Matthews referred to the SCMC deal as more of a merger, rather than an acquisition. "This is an opportunity to craft a new company using the strengths of both organizations," he said.
RBC is retaining many of SCMC's top officers and managers. When Mr. Matthews left RBC in mid-October, the company named Jonathan Threadgill as its new president. Mr. Threadgill was chief executive at SCMC.
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