Cendant Mortgage to Sell Servicing

Cendant Mortgage Corp., Mt. Laurel, N.J., is expected to make an announcement soon concerning the sale of some of its $144 billion servicing portfolio, industry sources have told MortgageWire.Investment bankers and executives familiar with the company say they are uncertain how large a portion of the portfolio might be offered. Matrix Bancorp Trading, Denver, a servicing advisory firm, is believed to be involved in the transaction but would not comment. Cendant Mortgage, a subsidiary of Cendant Corp., New York, also would not comment. In August, Cendant ended talks with Countrywide Home Loans, Calabasas, Calif., concerning the sale of the company. At the time, Goldman Sachs was representing Cendant. Merrill Lynch and Charles Schwab Corp. are two of Cendant Mortgage's largest outsourcing clients. Both firms have a say in refinancing loans that they outsource to Cendant, according to a source familiar with the mortgage unit. "This makes it complicated when it comes to selling servicing," he said. Cendant Corp. chairman Henry Silverman has made it clear that he does not like the volatility inherent in owning and hedging mortgage servicing rights.