Servicer Vericrest Financial is said to have obtained servicing rights out of the Berkshire Hathaway acquisition of a portfolio of Residential Capital whole loans, sources told HousingWire.
Vericrest Financial would not deny nor confirm those reports.
ResCap, the affiliate of Ally Financial that landed in bankruptcy reorganization, ended up offloading servicing and mortgage assets during an auction this week.
Ocwen in partnership with Walter Investment Management won the bid for ResCap’s mortgage servicing rights, while Business Insider confirmed that Berkshire Hathaway secured a portfolio of loans for $1.5 billion.
Sources claim Vericrest Financial plans to service those 47,000 loans for Berkshire Hathaway.
On the other hand, Compass Point Research & Trading said the Ocwen Financial acquisition of ResCap servicing assets will be “accretive to earnings,” but added the “economics of the deal may not be terribly attractive after taking into account ResCap’s current cost to service loans and the added expense of debt funding.”
“We estimate the deal could add $1.53 to $1.65 in normalized earnings per share, assuming 34-36 basis points of servicing fees on the mortgage servicing rights, 18-20 bps of total servicing fees (includes ancillary, late, etc.) on the subservicing and 30% pretax margins,” Compass Point said.
