Industry News

Hibernia to sell mortgage servicing portfolio to CitiMortgage

Co. anticipates some positions to be cut

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Hibernia has announced it is selling its approximately $10 billion, third-party residential mortgage-servicing portfolio to CitiMortgage. Financial terms were not disclosed. Hibernia will continue to originate home loans after the sale. The company for some time had been considering its options related to mortgage-servicing rights. "Fluctuating interest rates over the past two years have impacted the value of mortgage-servicing rights and resulted in volatility in the mortgage-servicing income stream for Hibernia and many other banks," said Paul Peters, mortgage-banking president for Hibernia. "Based on our ongoing analysis of the mortgage-servicing asset and our desire to limit earnings volatility in this area, we decided to exit the third-party mortgage-servicing business. We will now direct most of our mortgage-banking efforts toward retail residential origination and release the servicing rights to others in the industry." The sale of the portfolio is expected to be completed by ...