HSBC Holdings is currently reviewing a first round of bids taken on its $60 billion residential servicing portfolio, but has yet to make a decision on the sale, according to industry advisors familiar with the matter.
The first round of bidding occurred about two weeks ago. The bank has declined to comment on the sale process.
Sources said the MSRs were offered in one bulk package instead of pieces and it's still unclear whether its servicing platform in Depew, N.Y. will change hands.
At least one mid-sized commercial bank has looked at the portfolio, said a source. The MSRs are being offered through the bank's investment banking group, which is based in Chicago.
Back in the fall HSBC said it was considering its "strategic options" regarding its mortgage business, a code phrase for a sale.
The British-based bank lost billions of dollars by investing in subprime giant Household Finance last decade and has been quietly winding down that business over the past three years.
