FDIC Hopes to Sell AmTrust Servicing in 2Q

The Federal Deposit Insurance Corp. hopes to complete the sale of AmTrust's $20 billion servicing portfolio some time in the second quarter, according to an agency spokesman. "It will be done through a competitive auction process," he added but could not provide further details because it is too early in the sale process. Interested bidders are expected to include some of the nation's top 10 ranked servicers but also private equity firms that have entered the space the past two years or are looking for an entry point, said investment banking officials. The FDIC spokesman said he had no information regarding the future of AmTrust's servicing platform. The government took control of AmTrust Bank of Cleveland a month ago, selling its branches and some of its assets to New York Community Bank. NYCB, said the spokesman, agreed to service AmTrust's portfolio for "up to a year while we looked for a buyer [of the servicing rights]."