The Federal Deposit Insurance Corp. has accepted Banco Popular de Puerto Rico's bid to purchase mortgage servicing rights held by shuttered Doral Bank.
Popular Inc., the San Juan, Puerto Rico-based holding company of Banco Popular, will receive MSR portfolios with a total unpaid principal balance of approximately $5 billion in the deal, according to a March 2 news release. The FDIC auctioned the MSRs separately from Doral Bank's other assets and liabilities.
The purchase is expected to cost Popular approximately $48.6 million, or less than 1% of the total unpaid principal balance. The loans are being serviced for Ginnie Mae, Fannie Mae and Freddie Mac, and the deal is subject to numerous closing conditions including the consent of all three agencies.
Doral Bank's assets and liabilities were put up for sale as regulators shut the failing bank Feb. 27,
The transfers are expected to close within 60 days, pending closing conditions.
