PORTLAND, Maine -- Peoples Heritage Bank, a unit of Peoples Heritage Financial Group Inc., has announced the purchase of substantially all the servicing rights to $694 million of home mortgages from Bristol Mortgage Corp., a unit of Bristol Savings Bank, Bristol, Conn.
Heritage said the transaction was for cash but did not disclose the amount.
Prices of servicing portfolios vary widely according to the mix of maturities, loan types, and other factors.
Portfolio at $2 billion
A good-quality portfolio of the size bought by People's might bring $5 million to $7 million, according to industry guidelines.
The servicing portfolio of Peoples Heritage Bank is now nearly $2 billion, the company said.
Peoples said it had formed a new subsidiary, Peoples Heritage Mortgage Corp., which would open an office in the Boston area soon.
