Citigroup's plan to sell a $97 billion mortgage servicing portfolio and subservice its remaining accounts highlights the growing prevalence of nondepository servicers and raises questions about how much capacity exists for these institutions to absorb more large deals.

The deal, announced Monday, is the latest in a series of large servicing acquisitions by the publicly traded New Residential Investment Corp. The New York-based nonbank will pay approximately $950 million and $32 million for Citi's mortgage servicing rights and related advances, respectively, which are tied to Fannie Mae and Freddie Mac loans originated by CitiMortgage.

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