Colonial Savings Buys $1.7B MSR Package

Colonial Savings, Fort Worth, Texas, has purchased the servicing rights on 18,431 home loans with a combined principal balance of approximately $1.7 billion from a Midwestern bank.Colonial Savings said the acquisition increases its servicing portfolio by 15% on a dollar-volume basis to $12.7 billion. The effective date of the transfer will be June 1. James DuBose, president and chief executive officer of Colonial Savings, said the company estimates that the addition of the new loans will reduce its per-loan average cost of servicing by 16%.