Two Harbors Investment Announces Bulk Acquisition Of Mortgage Servicing Rights

(RTTNews) - Two Harbors Investment Corp. (TWO) announced that its wholly owned subsidiary, Matrix Financial Services Corporation, has entered into an agreement to acquire a bulk pool of mortgage servicing rights or MSRs from Flagstar Bank, FSB, a subsidiary of Flagstar Bancorp, Inc. (FBC).

The company noted that under the agreement, Flagstar will sell to Matrix the MSRs on residential mortgage loans having an aggregate unpaid principal balance of about $40.7 billion, for the purchase price of approximately $500 million. The underlying pool of mortgage loans is comprised of Fannie Mae and Ginnie Mae loans, originated primarily after 2010.

The acquisition is expected to close on or about December 31, 2013, and is subject to customary closing conditions, the company said.

Also, both parties have entered into a subservicing agreement pursuant to which Flagstar will act as the subservicer of the mortgage loans underlying the MSRs. Unless earlier terminated in accordance with its terms, the subservicing agreement will remain in effect so long as mortgage loans underlying the MSRs remain outstanding, the company stated.