JACKSONVILLE, Fla. – Prospects for the latest spin off by Fidelity National Financial Services took a blow yesterday after the company said Bank of America notified Fidelity National it is leaning towards phasing out its mortgage processing contract after it completes its acquisition of Countrywide Financial.
BofA told Fidelity National, which is in the process of spinning off its huge mortgage processing operation, it is leaning toward performing mortgage processing and appraisal services in house after the Countrywide deal is completed. The BofA contract provided 4% of revenues for Fidelity National’s mortgage processing operation in 2007.
Fidelity National Information, which last year was spun off from Fidelity National Title, plans to spin off the mortgage processing operations, the nation’s largest, into a separately traded company to be known as Lender Processing Services.
