After Talks Falter, Will IPO Be Next Strategy for Cendant?(Cendant Mortgage Corp., initial public offering)(Brief Article)

Countrywide Financial Corp., Calabasas, Calif., has taken a pass on purchasing Cendant Mortgage Corp., the nation's tenth largest servicer of residential loans, Mortgage Servicing News has learned.

Moreover, a source familiar with the deal said one option for Cendant Corp., the parent of CMC, is to spin off the unit through an initial public offering.

Both Cendant and Countrywide declined to comment as MSN went to press late last week.

Industry sources say price was not necessarily a key factor in talks breaking down over the weekend of March 20th.

One observer said Countrywide and Cendant were far apart on the issue of sourcing of loans from Cendant's realty units to the mortgage division and what value that might have to the deal. (Cendant owns Century 21 and other large real estate brokerage firms. The realty firms are not for sale.)

Cendant is best known in the industry as an affinity lender and private-label funder.

Countrywide was hoping to buy most or all of Cendant ...