Green Tree plans to spin out mortgage-servicing business

Green Tree Financial, the St. Paul loan service company, is headed toward independence again. Green Tree's owners are spinning out the company's mortgage-servicing business in a transaction that's expected to close by the end of the year, according to Standard & Poor's.

Deutsche Bank and Credit Suisse are underwriting recapitalization financing that will include a $30 million, five-year revolving credit facility and a $350 million, six-year loan, S&P reported.

Green Tree services a $33.4 billion portfolio consisting of more than 700,000 loans, making it the largest servicer of manufactured home loans in the United States.

Green Tree was purchased in 2007 by an investor group led by Centerbridge Partners and management from Fortress Investment Group and Cerberus Capital Management. The Centerbridge group will own Green Tree's other assets in a separate company.