* Unit to write-off recorded Fannie Mae's servicing asset
* Termination of contract effective April 1
March 20 (Reuters) - BankUnited Financial Corp said its subsidiary ended its mortgage selling and servicing contract with Fannie Mae and will write-off the recorded government-controlled company's servicing asset.
Fannie Mae's servicing asset totaled $15.8 million at Feb. 28, 2009, the holding company of BankUnited FSB said in a regulatory filing.
'The termination of the contract was consistent with the company's strategy of no longer being active in the wholesale residential lending business,' the Coral Gables, Florida-based lender said in the filing with the U.S. Securities and Exchange Commission.
The company, which has delayed filing its results, said it is still unable to predict when it can resume filing its results with the SEC, partly due to the rapid and unpredicted pace of deterioration of market conditions.
BankUnited was rocked by the current economic downturn as it saw the value of its mortgage portfolio deteriorate substantially last year.
The company, which has been trying to raise capital for the last few months, has seen it shares tumble more than 80 percent in the last six months due to mounting losses and liquidity concerns. Shares of the company closed down 12 percent at 22 cents Friday on Nasdaq.
(Reporting by Amiteshwar Singh in Bangalore; Editing by Deepak Kannan) Keywords: BANKUNITED/ (amiteshwar.singh@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: amiteshwar.singh.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Termination of contract effective April 1
March 20 (Reuters) - BankUnited Financial Corp said its subsidiary ended its mortgage selling and servicing contract with Fannie Mae and will write-off the recorded government-controlled company's servicing asset.
Fannie Mae's servicing asset totaled $15.8 million at Feb. 28, 2009, the holding company of BankUnited FSB said in a regulatory filing.
'The termination of the contract was consistent with the company's strategy of no longer being active in the wholesale residential lending business,' the Coral Gables, Florida-based lender said in the filing with the U.S. Securities and Exchange Commission.
The company, which has delayed filing its results, said it is still unable to predict when it can resume filing its results with the SEC, partly due to the rapid and unpredicted pace of deterioration of market conditions.
BankUnited was rocked by the current economic downturn as it saw the value of its mortgage portfolio deteriorate substantially last year.
The company, which has been trying to raise capital for the last few months, has seen it shares tumble more than 80 percent in the last six months due to mounting losses and liquidity concerns. Shares of the company closed down 12 percent at 22 cents Friday on Nasdaq.
(Reporting by Amiteshwar Singh in Bangalore; Editing by Deepak Kannan) Keywords: BANKUNITED/ (amiteshwar.singh@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: amiteshwar.singh.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.