MetLife Bank has emerged as the winning bidder on a $23 billion package of residential servicing rights auctioned off by the Federal Deposit Insurance Corp. (FDIC), according to investment banking sources close to the situation.
Nationstar Mortgage, Lewisville, Texas, also got a piece of the receivables, sources said, but at press time it was unclear how much.
The sale is expected to officially close some time next month. The servicing rights once belonged to AmTrust Bank of Cleveland, a thrift that failed late last year.
The package, which includes the servicing rights to roughly 100,000 loans with delinquencies of under 4%, was marketed through Milestone Merchant Partners, which has offices in Washington, and Miami. (MetLife's mortgage unit is based in Texas.)
All of the parties involved declined to comment.
Over the past two years MetLife has been one of the fastest growing players in mortgage banking. Not only did it buy most of First Horizon's mortgage operations, but it recently expanded into correspondent and warehouse lending.
Among all residential servicers, it ranks, 11th nationwide with $100 billion in receivables, according to figures compiled by National Mortgage News and the Quarterly Data Report.