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A group including $78 billion-asset M&T and $9 billion-asset Sterling Financial ratcheted up their servicing portfolios by a fifth or more in 2011. Nonbanks are scooping up problem loan servicing, but banks still have a distinct funding advantage.
March 20
Saxon Mortgage, a servicing firm owned by Morgan Stanley (MS), is shuttering two of its Texas processing facilities and laying off roughly 680 of its workers.
The Dallas Business Journal
Earlier this week, Morgan Stanley sold the bulk of Saxon's assets to Ocwen Financial (OCN) for $73.8 million, but that deal did not include Saxon employees. With the sale, Morgan Stanley has largely exited the servicing business.
The planned layoffs cap an eventful stretch for Saxon and Morgan Stanley. Apart from the sale, Morgan Stanley was hit this week with
The order requires Morgan Stanley to hire an independent consultant to review Saxon's practices and make restitution to any borrowers "who suffered financial injury as a result of wrongful foreclosures."