Investor Leon Black's group paid $192 million for Weyerhaeuser Mortgage Co., a substantial premium over the value of its $4 billion servicing portfolio.

Weyerhaeuser disclosed the price last week upon the conclusion of the sale. Observers said Mr. Black paid a premium because he was eager to get into the growing business of lending to people with lower credit ratings.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.