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EverBank sells servicing rights to Green Tree

Posted: November 1, 2013 - 4:39pm  |  Updated: November 1, 2013 - 5:02pm

Jacksonville-based EverBank Financial Corp. reached an agreement this week to sell $13.4 billion worth of servicing rights to Green Tree Servicing.

The deal reached Thursday involves the sale of EverBank’s default mortgage services to Green Tree, which is a subsidiary of Walter Investment Management. As part of the deal, Green Tree will get sub-servicing rights to nearly $7 billion in unpaid principal from government and Ginnie Mae loans in addition to other outstanding principal.

An EverBank news release on the company’s Internet site said the agreement amounts to, “the sale and subservicing of $20.3 billion of unpaid principal balance of higher delinquency profile servicing and the sale of its default servicing platform.”

“We are excited about the opportunity to partner with Green Tree on this transaction. The servicing of loans with higher-delinquency profiles has become a specialized business and Green Tree has demonstrated a strong track record of success in this market,” EverBank CEO Robert Clements said.

As part of the deal, Green Tree will assume lease obligations on approximately 86,000 square feet on three floors of space at EverBank Center in Jacksonville and acquire the fixed assets associated with the default platform. As part of the deal, Green Tree has agreed to offer employment to a minimum of 500 EverBank mortgage servicing employees who will be allowed to stay in Jacksonville.

The close of the sale is expected to be completed in the first quarter of 2014, the news release said.
Meanwhile, EverBank reported the company’s results from the third quarter of trading that ended Sept. 30.
EverBank reported $282 million in revenue for the third quarter, up by 26 percent compared to the same period in 2012.

EverBank had a net income of $33 million in the third quarter, up 49 percent over the 2012 figure for the same time frame.

Drew Dixon: (904) 359-4098

Comments (1)

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jax7804
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jax7804 11/02/13 - 11:01 pm
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Premium Member

The default service

The default service department has around 700 employees, so look for about 200 to be out of work or to take some kind of early retirement. Decent group of people overall, but some really bad apples mixed in. Too many moving parts in this sector and each area tries to beat out the other one. With that in mind, there's a lot of internal confusion pertaining to policies and procedures.

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