Citizens Financial Group Inc. has sold $3.8 billion of servicing rights to Bank United Corp., Houston.
The deal completed the disposition of Citizens' $12 billion servicing portfolio, which was begun last fall. Terms were not disclosed.
Last month, Citizens sold $5 billion of servicing to Dovenmuehle Mortgage Inc. for about $89 million. At that time, Citizens announced it had decided to retain some servicing rights and that Schaumburg, Ill.-based Dovenmuehle would subservice these assets.
Bank United, which owns Commonwealth United Mortgage, recently sold parts of its origination network to National City Mortgage Co., a subsidiary of National City Corp., Cleveland. The Houston thrift plans to focus its origination efforts on the Texas market but continue servicing for customers nationwide.
Citizens will originate mortgages through its 230 Citizens Bank branch offices in New England. The company also exited the wholesale mortgage business late last year. Offices in the Southeast and Northeast were transferred to Old Kent Mortgage Services.
Royal Bank of Scotland owns 76.5% of Citizens Financial. The remainder is owned by Bank of Ireland.