Walter Investment Management Corp. (NYSE: WAC) announced today that through its Green Tree subsidiary, it has entered into a series of definitive agreements with EverBank Financial Corp (NYSE: EVER) that includes the acquisition of more than $20 billion in Fannie Mae, Freddie Mac, Ginnie Mae and private label forward mortgage servicing rights.
Through Green Tree, the deal includes the purchase of approximately $10.2 billion in unpaid principal balance of Fannie Mae and Freddie Mac backed residential servicing assets, as well as $3.3 billion UPB of private label residential servicing assets.
The agreement also grants Walter, through its Green Tree subsidiary, rights to subservice a Ginne Mae forward portfolio of approximately $5.2 billion UPB and a $1.7 billion UPB whole loan portfolio.
The portfolio of assets acquired and subserviced consists of more than 179,000 loans that are projected to be 75% current at transfer. The transaction will have an economic closing as of October 30, and the bulk of the servicing transfers will occur during the first quarter of 2014, according to a release from the company.
“We are pleased to announce this transaction with EverBank, which will add over $20 billion of UPB and 179,000 accounts to our serviced portfolio, and extends our complement of serviced product to Ginnie Mae forwards,” said Mark J. O’Brien, chairman and CEO of Walter Investment Corp.
Also included as part of the transaction agreements, Walter will assume EverBank’s default serving platform and will offer employment to a number of related employees.
“We believe the addition of the EverBank best-in-class default program and employees to our existing platform will augment both our product capabilities and capacity as well as extend our geographic diversity as we continue to execute on the significant opportunities for growth available in the specialty mortgage sector,” O’Brien said. “Most importantly we look forward to building our strategic partnership with the highly regarded EverBank team.”
The deal is subject to customary closing conditions and Walter expects to complete the transaction during the first quarter of 2014.
Walter is the parent company of Reverse Mortgage Solutions and Security One Lending, and maintains a reverse mortgage servicing portfolio in addition to its forward servicing business.
Written by Jason Oliva