Chase Home Mortgage Corp. is close to a deal to buy the $1.8 billion servicing portfolio of M-West Mortgage Corp., a California-based mortgage bank.
Though the deal has not yet been inked, the servicing sale is expected to go through shortly, sources said. M-West is also attempting to sell its loan-origination network, sources said.
Officials from M-West Mortgage and Tampa, Fla.-based Chase declined to comment.
Suggested Price Range
No price has been mentioned, but servicing sales have typically been for 125 to 150 basis points. This range would suggest a price between $20 million and $25 million.
The market for servicing has been very busy lately because lenders have been rushing to sell in order to prop up flagging earnings.
Chase has been an active bidder for mortgage properties in recent months, according to industry ,insiders. The company was one of those that expressed a ardent interest in Margaretten Financial Corp., which was eventually sold to Chemical Bank.
Chase on Short List
As well, Chase was on the short list of bidders for the mortgage assets of U.S Bancorp of Oregon. That property eventually fell to Mellon Mortgage Co.
In addition to the servicing portfolio M-West has a retail and wholesale loan-production system that generated about $1.2 billion of home loans in 1993.
Independently owned, M-West Mortgage came into existence five years ago when it acquired the assets of Meritor Mortgage West.