At Least $25 Billion in MSR Sales Under Way: Temple Inland
Temple Inland Corp. here will take a $13 million after-tax hit on its mortgage business in the third quarter as it prepares reserves related to key asset sales and layoffs.
Temple, the parent of Guaranty Residential Lending, also of Austin, is in the process of selling its 100-branch, non-bank mortgage network plus $8 billion in servicing rights.
Temple, a paper products company, said some 1,500 employees will be "affected" by the sale of the branches and the servicing. However, it would not comment on any layoffs.
A Temple spokesman said the company hopes employees working in the branches being sold will have an opportunity to retain their jobs under new owners.
The company expects to complete the servicing and branch sales by the end of the fourth quarter. Guaranty will remain in the mortgage business, concentrating its focus on where the bank has retail depository outlets. It also will keep its wholesale division.
About three weeks ago, when the yield on the 10-year Treasury had fallen below 4%, reports were circulating that Temple/Guaranty might delay the servicing sale but with rates rising once again it appears the auction is once again on the front burner.
As reported by MSN's sister publication, National Mortgage News recently, at least 30 firms have expressed interest in the branch network or regional pieces of it. First Horizon Home Loans, Irving, Texas, is believed to be the winning bidder on the West Coast retail operation.
Another bidder is believed to be Aegis Mortgage of Houston. To date, Temple has yet to identify any winning bidders in regard to its branch network. Copyright 2004 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com http://www.mortgageservicingnews.com