That was the case last week when Cendant announced it was considering "strategic alternatives" for its mortgage business. Interestingly enough, Silverman does not want to completely let go. He wants a deal that allows for cross-selling with its other divisions, such as Century 21 and Coldwell Banker.
Cendant provided vague reasons for selling. Then again, the reason should be clear: The interest-rate environment is adversely affecting refinancings.
Cendant's mortgage business, however, is focused on servicing existing mortgages, which is believed to be more stable. For example, in May the Principal Financial Group
And they should be. The crash in earnings at Washington Mutual
Fool contributor Tom Taulli is the author of The EDGAR Online Guide to Decoding Financial Statements. He does not own shares in any stocks mentioned.