Principal Residential on Auction Block

Principal Residential Mortgage, Des Moines, Iowa, the nation's 11th-largest residential servicer, is on the auction block, industry sources have told MortgageWire.One mortgage executive familiar with the company said, "They're in talks now with buyers." A spokeswoman for PRM's parent, the Principal Residential Group insurance company, declined to comment. According to figures compiled by National Mortgage News, PRM serviced $118.9 billion in loans at year-end. Among funders it ranked 15th. Its production volume in the quarter fell by 52% and the unit suffered an operating loss of $42.8 million, versus a profit of $29.1 million a year earlier. (For more details, see the March 8 issue of NMN.