We knew Saxon Mortgage carried some bad loans, but they now belong to Ocwen. Soon Saxon Mortgage will be gone all together. Morgan Stanley is said to be closing the window for eligible bids on its mortgage servicer, Saxon Mortgage, according to sources familiar with the process.
The Wall Street investment bank put Saxon on the market in May and has been taking bids since. Saxon services about $28 billion in mortgages, down from $55 billion in the fourth quarter of 2008, according to regulatory filings.
Morgan Stanley would not comment on any pending deal, but sources tell HousingWire there are several offers already on the table.
Ocwen would seem to be a more natural fit at first glance, as Saxon already transferred mortgage servicing rights on about 38,000 predominately subprime loans, with an aggregate unpaid principal balance of about $6.9 billion, over to Ocwen Loan Servicing this past April.