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Walter Investment Management Corp. Announces Strategic Transaction With EverBank

Stocks in this article: WAC

TAMPA, Fla., Oct. 31, 2013 /PRNewswire/ -- Walter Investment Management Corp. (NYSE: WAC) ("Walter Investment" or the "Company") today announced that it has entered into a series of definitive agreements through its Green Tree subsidiary with EverBank Financial Corp ("EverBank").  The definitive agreements cover the following key items:

  • Purchase of approximately $10.2 billion unpaid principal balance ("UPB") of Fannie Mae and Freddie Mac backed residential servicing assets and related advance receivables
  • Purchase of approximately $3.3 billion UPB of private label residential servicing assets and related advance receivables
  • Rights to subservice an approximately $5.2 billion UPB Ginnie Mae forward portfolio and a $1.7 billion UPB whole loan portfolio
  • Assumption of their default servicing platform and offer of employment to a significant number of related employees

Additionally, the Company expects to finalize in the near term the establishment of a delinquency flow outsourcing arrangement wherein the Company will provide outsourced default servicing on a flow basis to EverBank from its mortgage portfolio.  The transactions are subject to standard approvals and the purchase price will be subject to customary adjustments, including an adjustment to actual UPB as of October 30, 2013.   

The portfolio of assets acquired and subserviced consists of over 179,000 loans that are projected to be approximately 75% current at transfer.  The transaction will have an economic closing as of October 30, and the bulk of the servicing transfers will take place during the first quarter of 2014. 

Mark J. O'Brien, Chairman and CEO of Walter Investment said, "We are pleased to announce this transaction with EverBank, which will add over $20 billion of UPB and 179,000 accounts to our serviced portfolio, and extends our complement of serviced product to Ginnie Mae forwards.  We believe the addition of the EverBank best-in-class default platform and employees to our existing platform will augment both our product capabilities and capacity as well as extend our geographic diversity as we continue to execute on the significant opportunities for growth available in the specialty mortgage sector.  Most importantly we look forward to building our strategic partnership with the highly regarded EverBank team."

Approvals and Timing

The closing of title is subject to receipt or waiver of governmental approvals and third-party consents and the satisfaction of other customary closing conditions.  The Company expects to complete the transaction during the first quarter of 2014.

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