HomeSide Lending Inc. has formed a strategic alliance with Cendant Mortgage of Mount Laurel, N.J.
The Cendant Corp. unit agreed to sell up to $7 billion of mortgage servicing rights to HomeSide over the next five years, in addition to the $7 billion of servicing that HomeSide has purchased from Cendant since the year began.
The deal gives HomeSide, a unit of National Australia Bank, yet another channel to feed its $139 billion portfolio. The company has similar "flow" arrangements with BankBoston, Bank One, and People's Bank of Bridgeport, Conn.
Cohane Rafferty Securities of Harrison, N.Y., advised Cendant on the transaction.