The company has announced a definitive agreement to acquire the residential mortgage servicing platform, including certain servicing-related technology assets, of MetLife Bank NA. The assets to be acquired do not include any mortgage loans or mortgage servicing rights. Terms of the transaction were not disclosed.
Walter Investment anticipates that its wholly owned subsidiary, Green Tree Credit Solutions, will employ approximately 300 of MetLife Bank's servicing employees and anticipates it will continue to occupy MetLife Bank's premises in Irving, Texas. MetLife Bank's servicing platform is currently servicing Fannie Mae, Freddie Mac and Ginnie Mae mortgage loans with an approximate principal balance of $70 billion.
‘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,’ says Mark J. O'Brien, chairman and CEO. ‘We are very excited about adding the strong MetLife servicing management group and their associates to our team. In addition, the platform also accelerates our opportunities with respect to product diversity plans given its proven, efficient Ginnie Mae and Freddie Mac capabilities.’Â
Separately, Walter Investment signed a definitive agreement to acquire approximately $93 billion of unpaid principal balance (UPB) of Fannie Mae-backed residential servicing assets, including related advance receivables of approximately $1 billion, from Bank of America. The portfolio of assets acquired consists of over 650,000 loans that are projected to be approximately 80% current at transfer. The transaction will have an economic closing as of Jan. 31, and the bulk of the servicing transfers will take place during the first and second quarters.
‘The acquisition of these assets stands as a testament to our long-standing strategic relationships with both Bank of America and Fannie Mae, as well as to the growing and vital role specialty servicers like Walter are playing in the mortgage sector,’ says O'Brien. ‘Upon completion of this transaction and the ResCap acquisition, Walter Investment will become one of Fannie Mae's top five servicers by servicing volume and will have more than 2 million units and $225 billion of UPB in its servicing portfolio.’