SecurityNational Mortgage Co., a wholly owned subsidiary of Security National Financial Corp. of Salt Lake City, has sold substantially all of its mortgage servicing rights to PNC Bank of Pittsburgh for approximately $89.7 million. SecurityNational said the value of the mortgage portfolio represents an aggregate unpaid principal balance of approximately $7.05 billion, loans that were previously originated by the company.
“First, to be able to have such a strong and experienced counterparty as PNC Bank in the sale of our mortgage servicing rights was a key factor in our decision to sell,” said Scott Quist, CEO and chairman of the board of directors of Security National Financial Corp. “We are fully confident in PNC Bank’s ability to service the borrowers with promptness and integrity. Secondly, this sale simply represents an investment decision. We believe we can take the proceeds from this sale and reinvest them at considerably higher rates of return, thus improving our profitability. Thirdly, this sale gives greater liquidity to the company, which we believe will allow us to take greater advantage of market opportunities in this environment of increasing interest rates.”