Servicing Rights Deal Puts Fleet over $100B

Fleet Mortgage Group joined the $100 billion club as it announced the purchase of $15 billion in servicing rights from Household International.

The deal brings Fleet's servicing portfolio to $105 billion and puts it at No. 3 among the largest mortgage servicers.

Countrywide Credit Industries, Pasadena, Calif., with a $118 billion servicing portfolio, is the largest, followed by GE Capital Mortgage Services, which last month bought two servicing portfolios bringing servicing rights to $110 billion at the General Electric subsidiary.

Fleet's purchase from Household includes $13.1 billion of servicing rights for about 145,000 loans, with an average note rate of 7.8%. The two companies also made a long-term agreement under which Fleet will service Household's $1.9 billion mortgage portfolio.

The purchased loans are geographically dispersed, and their total delinquency rate is 1.6%. The industry average delinquency rate is 3.8%.

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