By Saabira Chaudhuri
Walter Investment Management Corp. (WAC) has agreed to buy the
residential mortgage servicing platform--including certain
servicing related technology assets--of MetLife Inc. (MET) for an
undisclosed amount.
Separately, Walter said it agreed to buy about $93 billion of
Fannie Mae (FNMA)-backed residential servicing assets from Bank of
America Corp. (BAC) for $519 million.
Shares of Walter rose 10% to $48.45 in recent premarket trading.
The stock has more than doubled in the past 12 months.
Walter said it will likely employ about 300 of MetLife Bank's
servicing employees and anticipates it will continue to occupy the
current mortgage servicing premises in Irving, Texas.
MetLife Bank's servicing platform services Fannie Mae, Freddie
Mac (FMCC) and Ginnie Mae mortgage loans with a principal balance
of roughly $70 billion. The existing servicing portfolio was
recently sold by MetLife and the loans will be transferred to the
new owner prior to the closing of the latest deal transaction,
likely in March.
Walter--a Tampa, Fla.-based asset manager, mortgage servicer and
originator--said based on "expected continued growth
opportunities," it is developing a "robust dual-track residential
mortgage servicing platform" and expects to house a portion of the
newly acquired Bank of America (BAC) rights on the platform.
"We believe the acquisition of the MetLife servicing platform,
in conjunction with our existing high-touch servicing capabilities,
positions us very well to continue to capitalize on the
opportunities available in the mortgage servicing sector by
providing additional capacity to assist with projected portfolio
growth," Walter Chief Executive Mark J. O'Brien said. "In addition,
the platform also accelerates our opportunities with respect to
product diversity plans given its proven, efficient Ginnie Mae and
Freddie Mac capabilities."
Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com
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