Even though the residential mortgage industry has been through the wringer the past four years outside money is continuing to eye the sector, but is being choosey about what it buys -- and how much it spends on both companies and servicing rights.
Over the past few months rumors have surfaced concerning a $1 billion fund being amassed to buy existing companies.
One advisor familiar with the effort said the first $100 million tranche of the fund has been delivered but the group is nowhere close to buying anything.
“They're looking and asking a lot of questions,” said the advisor, requesting his name not be published. “These are big money people and they're looking to buy,” he added.
Former Morgan Stanley executive Bruce Witherell is involved with an investment group exploring opportunities in mortgages, but is not involved in the $1 billion fund.
Witherell confirmed to National Mortgage News that he is interested in residential finance and is working on something, but declined to provide any details. An investment banker by nature, he also did a short stint at the post-conservatorship Freddie Mac as chief operating officer. (For the full story see the weekly edition of NMN.)
