Walter Investment Management posted strong servicing results in the third quarter while revealing that it will take control of $50.4 billion of Fannie Mae mortgage servicing rights when
Walter, which partnered with Ocwen Financial on the ResCap transaction, said the receivables will cost the firm $540 million but it will also have access to $183 million of advance money.
Ocwen is a subservicer for Fannie’s chief competitor, Freddie Mac.
Overall, the Tampa, Fla.-based Walter posted net income of $6.4 million in 3Q compared to a $65.8 million loss in the same period a year earlier.
Its servicing revenue increased to $101 million during the period, a 15% improvement.
Walter, which also owns Green Tree Servicing, is in the process of securing a $600 million credit facility through its bankers, Credit Suisse and Morgan Stanley.
