Is the Bulk Market Coming Back?(Brief Article)

Washington -- After three years of being in the doldrums, is the bulk servicing market finally poised for a revival?

"I think 2006 is going to be a heavy year for servicing sales," predicted Dan Thomas, a servicing analyst for Servicing.com, New York.

Of course, in years past, brokers have forecasted revivals in the sector only to be disappointed after rates defied the odds, continuing on a downward path.

But this time around, it appears that rising rates are here to stay - at least for the next six months - and with the yield on the 10-year at 4.6%, certain sellers are ready to cash out.

As Mortgage Servicing News went to press this month, a $5 billion bulk package was being auctioned off, and there was talk of a $10 billion package soon hitting the market as well.

The seller of the $5 billion package was said to be Flagstar Bancorp, Troy, Mich., but that could not be confirmed. At press time, Flagstar had not returned telephone calls.