Just a few months after disclosing plans to closed its wholesale lending channel, EverBank Financial Corp. announced an agreement to downsize its mortgage servicing business.
The Jacksonville, Fla.-based financial institution said in July that it was going to close down its wholesale lending business.
At the time, EverBank said it would increase its focus on generating production from the retail channel and from correspondent lending clients.
In its third-quarter earnings report released Wednesday, EverBank disclosed an agreement downsize its mortgage servicing business.
EverBank will sell its default servicing platform to Walter Investment Management Corp.-subsidiary, Green Tree Servicing LLC. The deal is expected to closed in the first-quarter 2014.
Once the sale is complete, Green Tree will sub-service a $6.9 billion portfolio of Ginnie Mae loans for EverBank.
In addition, Green Tree will acquire mortgage servicing rights on $13.4 billion in Fannie Mae, Freddie Mac and investor mortgages. The sale is expected to complete by the end of the year.
“The above activities, combined with the exit from our wholesale broker mortgage business and our settlement with the OCC and Federal Reserve, position EverBank to better focus on our core clients and businesses,” the report stated.
EverBank reported $2.700 billion in residential loan originations during the three months ended Sept. 30.
Business declined from $3.251 billion three months earlier but improved from $2.531 billion a year earlier.
Year-to-date volume totaled $8.851 billion.
The latest originations included $1.933 billion in conventional loans and $0.767 billion in jumbo loans.
EverBank owned $6.699 billion in residential loans. The total included $4.624 billion in residential assets and $2.075 billion in mortgage pool buyouts.
Commercial mortgage holdings were $3.243 billion.