American Home Mtg buys servicing rights from Citi
Posted February 04, 2009 10:00 pm
NEW YORK -- Citigroup Inc.'s residential mortgage unit has sold servicing rights on 185,000 loans to American Home Mortgage Servicing Inc.
American Home Mortgage -- which specializes in servicing "Alt-A" and subprime loans -- said the deal increases the number of loans it services by 45 percent to 575,000. The company said customers were notified of the switch in January.
New York private equity firm WL Ross and Co. LLC controls the funds that own American Home Mortgage. Wilbur Ross, who runs the private equity firm, said in an interview on CNBC that American Home Mortgage bought the portfolio from Citigroup for $1.5 billion.
As of Dec. 31, the Irving, Texas-based loan servicer managed a portfolio of more than $85 billion.
Article Comments
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked.
If a comment violates these standards or our terms of service, click the "flag" link in the lower-right corner of the comment box. To find our more, read our FAQ.