Countrywide's Mozilo Expects to See a Trillion Dollar Servicer by 2005.(Brief Article)

Within five short years, or even less, the mortgage banking sector will undoubtedly see its first $1 trillion servicer - but who will be the first to cross that magic threshold?

According to Countywide Home Loans chairman Angelo Mozilo, there are three candidates: Washington Mutual, Seattle; Wells Fargo Home Mortgage, Des Moines, Iowa; and his own Calabasas, Calif.-based non-depository which is on the threshold of obtaining a bank charter.

"I think we're one possibility," said Mr. Mozilo in a brief interview.

The question of who will be the first to reach $1 trillion in housing receivables took on some urgency last week when WaMu became the nation's second $450 billion-plus servicer by agreeing to purchase Fleet Mortgage Group, Columbia, SC.

For several years it has become apparent that building scale is essential to surviving - and thriving - in the residential servicing arena.

The current thinking - according to WaMu chairman Kerry Killinger - is that if a firm can't amass at least $100 billion in servicing it should exit the business. (A few years back the current thinking was that $50 billion was needed to make a go of it in servicing.)

According to figures compiled by Mortgage Servicing News, after the Fleet deal is completed there will be nine firms with $100 billion or more in servicing and four with $300 billion or more: Wells, ...