Countrywide expected buyer of Cendant mortgage arm

Home loan giant Countrywide Financial is the expected buyer of Cendant's mortgage business, according to news reports.

Cendant Corp. today announced  that it is in discussions with a potential buyer of its mortgage business, but it did not reveal the prospective company's name.

Cendant also is talking with the potential buyer about creating an ongoing relationship to provide for its continued participation in the mortgage business through its residential real estate, relocation and settlement services businesses. Cendant announced earlier this month that it is considering selling its mortgage business.

The company anticipates that the potential transaction, if completed, would result in net proceeds to Cendant at the time of sale of between $750 million and $1 billion, after repayment of about $5 billion to $6 billion of associated debt.

The terms of the potential transaction are subject to completion of due diligence, determination of an appropriate structure regarding Cendant's ongoing participation in the mortgage business and negotiation of definitive agreements.

New York City-based Cendant primarily provides travel and residential real estate services.

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