Flagstar Selling $10B in Bulk Servicing

Flagstar Bancorp, Troy, Mich., is selling a $10 billion package of residential bulk servicing rights, according to investment banking sources. The offering could hit the market as early as Tuesday afternoon. A company spokesman declined to comment. The thrift, which raised fresh capital last year, is also one of the nation's top wholesale lenders, according to figures compiled by National Mortgage News and the Quarterly Data Report. If the servicing sale is successful it would help the lender raise cash. Besides the Flagstar offering, two other large bulk deals are on the market: a roughly $20 billion package of rights from AmTrust Bancorp, Cleveland, and $11 billion from Thornburg Mortgage of Santa Fe. AmTrust's servicing is controlled by the FDIC. Thornburg is in bankruptcy.