Bidders are starting to show an interest in the $59 billion servicing portfolio being shopped around by HSBC Bank, according to advisors familiar with the deal.
At this point no names have surfaced and it's still unclear whether the bank's servicing platform in Depew, N.Y. is being offered as well. To date, the bank has declined to discuss the matter.
Back in the fall HSBC said it was considering its "strategic options" regarding the mortgage business, a code phrase for a sale.
The British-based bank lost billions of dollars by investing in subprime giant Household Finance last decade and has been quietly winding down that business over the past three years.
Investment bankers say HSBC is offering the MSR portfolio through its investment banking group in Chicago. "HSBC is pretty tight lipped about the whole thing," said one Washington-based advisor. "They're open to selling all or part of the thing."
