Opteum Inc., whose mortgage banking troubles had served as a harbinger of larger trouble in the Alt-A lending market, said this morning that its subsidiary Orchid Island TRS, LLC has sold off “substantially all” of its remaining mortgage loan servicing portfolio — the last remaining piece of Opteum’s former mortgage operations. In late April, Opteum said it would exit conduit and wholesale lending; in May, the company reached a deal to sell its retail origination platform. From the press release (no link available):
Opteum Inc. … today announced that its majority-owned subsidiary, Orchid Island TRS, LLC … has entered into a definitive agreement to sell substantially all of its remaining mortgage servicing portfolio. The aggregate unpaid principal balance of the loans underlying the servicing rights sold was approximately $2.97 billion as of June 30, 2007. The sales proceeds will be used to repay debt that is currently secured by OITRS’s mortgage servicing portfolio and for other general corporate purposes. The transaction, which is subject to various closing conditions, is expected to be completed by September 4, 2007. Terms were not disclosed.
I haven’t heard any discussion of who the purchaser might be, but will pass that on if anything verifiable materializes.
