CWCapital (CWC), Boston, on Thursday revealed that it has bought $2.6 billion of Fannie Mae multifamily servicing rights from Citigroup. No price was disclosed.
The MSRs are backed by 2,200 loans. CWC said the purchase increases its servicing portfolio to $16 billion.
The mortgages will be serviced through Small Loan Servicing Group (SLSG), Needham, Mass., a newly created division of CWC. Gardner Hall, managing director of CWC's loan servicing group, will oversee the new portfolio.
SLSG plans to launch what it calls a “small loan” origination effort some time in the first quarter of next year. The unit will be managed from the Irvine, Calif., offices of CWC.
“Citi's decision to sell the portfolio is consistent with its strategy of reducing assets in Citi Holdings, Citigroup's portfolio of non-core operating businesses and assets,” the company said in a statement. “Citi will continue to be a Fannie Mae DUS lender through Citi Community Capital, Citi's community development lending and investing group.”