Cendant Corp. today announced it is considering selling its mortgage origination platform and mortgage servicing business.
That is one option the company said it would consider as it looks for “strategic alternatives” for its mortgage business. Any transaction would be designed to preserve the cross-selling benefits of a “value circle” that exists between the mortgage business and the company’s residential real estate brands, according to a company statement.
“Our company will always participate in the mortgage business because of its leading position in the residential real estate market and the tremendous opportunity we have to cross-sell mortgages to our customers,” said CEO and president Henry R. Silverman. “Our mortgage business, which is expected to account for only a fraction of the company’s income in 2004, continues to perform in line with our expectations. However, our mortgage banking activities can produce volatility in Cendant’s earnings inconsistent with our business model and the remainder of our portfolio.”
“We are seeking a solution that reduces our company’s exposure to traditional mortgage banking while benefiting from continued participation in the mortgage business in conjunction with our residential real estate activities,” he added.
New York City-based Cendant primarily provides travel and residential real estate services.
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