Is a Top Ten Lender Up for Grabs?

Is one of the top 10 servicers considering bolting the business, or at least selling its receivables?

It's hard to say, but one investment banking official told Mortgage Servicing News recently that the parent company of a large lender/servicer has quietly contacted a handful of Wall Street firms about evaluating its mortgage banking subsidiary.

It seems likely that none of the top five - Washington Mutual, Wells Fargo, Chase Manhattan Mortgage, Countrywide and Bank of America - are contemplating heading for the exits.

Servicers, on a regular basis, hire outside consultants, usually accounting firms, to evaluate their business, especially in regard to their receivables. But whether a large mortgage bank has a Wall Street firm on retainer to evaluate a sale is a different matter.

One veteran servicing broker said he has heard nothing about a large player contemplating a sale. However, he surmised that if a top player - whether it's a top 10 or top 20 ranked firm - is considering exiting, it likely would be a non-depository.

The only non-depository among the top 10 servicers is Cendant Mortgage, Mt. Laurel, N.J., which had a servicing portfolio of $107 billion at midyear. (Countrywide is no longer considered a non-depository because it has an OCC- regulated bank in its empire.)

Some ...