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$706M Mortgage Firm to be purchased by Morgan Stanley |
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Written by Mabelle
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Wednesday, 09 August 2006 |
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On Wednesday, Morgan Stanley announced that it would pay $14.10 a share or $706 million for Saxon Capital Inc. This will serve as a part of a strategy to build a vertically integrated international residential-mortgage business.
Anthony Tufariello, global head of Morgan Stanley's securitized products group, said in a statement that Saxon builds on the market's existing origination and securitization capabilities by providing it with an extremely strong servicing platform.
The business move is the trend among top today. Meanwhile, Wall Street firms have been eagerly buying big issuers of home loans to support their mortgage-backed-securities businesses. Tufariello also said that the business move gives Morgan Stanley new opportunities to originate non-prime mortgages.
Last month, Morgan Stanley CEO John Mack reported that the firm was aggressively looking for mortgage-origination and servicing acquisitions. However, it would remain cautious in its purchases.
By M. Sese
http://realestatepress.org
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