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Morgan Stanley (MS +2.2%) is considering selling off Saxon Mortgage Services, the servicer it...

Morgan Stanley (MS +2.2%) is considering selling off Saxon Mortgage Services, the servicer it acquired at the height of the housing boom for about $700M, the New York Post reports. It's the thing to do, as Goldman Sachs (GS +0.4%) also shops its Litton unit - possibly to Ocwen Financial (OCN +0.9%), which paid $7B to Saxon for a servicing portfolio last year.
Comments (2)
  • Duude
    , contributor
    Comments (3398) | Send Message
     
    If they're looking to sell it, I'd think a housing recovery must be imminent. But since they're only considering it, they probably won't and housing will see its bottom the latter half of this decade.
    10 May 2011, 12:35 PM Reply Like
  • Hitesh Patel
    , contributor
    Comments (314) | Send Message
     
    If they are looking to sell these units now the question one has to ponder is how much worse these firms think things will get. A short trip down memory lane takes us to Home depot, when they took an approximate 4b hit from their original negotiated deal for their Contractor division. They apparently saw the writing on the wall. MS and GS getting out of mortgage services doesn't bode well for housing or the economy.
    10 May 2011, 09:43 PM Reply Like
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