C-BASS Buys B&C Servicing Portfolio

C-BASS here has acquired $8 billion in subprime housing receivables and two servicing offices from PCFS Mortgage Resources, Cincinnati.

A spokesman for PCFS said C-BASS is expected to keep the unit's Atlanta platform, but plans to phase out the Cincinnati location. No purchase price was disclosed. At press time C-BASS could not be reached for comment.

PCFS is the subprime residential arm of Provident Bank, which was recently bought by National City Corp. C-BASS is best known in the industry as a master servicer and a "scratch and dent" servicer.

National City, which already owns a subprime company, has liquidated the retail and wholesale arms of PCFS. The bank will keep the PCFS warehouse division.

The $8 billion in servicing was the last remaining asset left at PCFS. At one point, Goldman Sachs & Co., was said to be looking at the PCFS platform but passed. (Goldman is about to launch a nonconforming conduit, and is using Countrywide Home Loans, Calabasas, Calif., as it servicer.)

Meanwhile, in other servicing related transactions, a planned sale of $10 billion in bulk servicing rights by Cendant Mortgage Corp., Mount Laurel, N.J., has been scrapped, sources said.

The bid date on the portfolio was Sept. 27, said one broker who has seen the offering. "I don't think it ever went off," the broker said, requesting anonymity.

CMC's parent, Cendant Corp., now plans to spin-off the mortgage banker in a transaction scheduled for the first quarter of 2005. And in one other servicing transaction Downey Savings, Newport Beach, Calif., this past summer sold about $7 billion in servicing rights, said one advisor. Downey could not be reached for comment.

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