Morgan Stanley to sell Saxon

Morgan Stanley plans to sell its mortgage-servicing business to Ocwen Financial Corp for $59.3m (£37m), closing out a money-losing strategy that stemmed from the subprime housing bubble. The deal, announced yesterday, signals Ocwen's strategy of expanding by buying troubled servicing assets on the cheap from big banks that have stepped back from the US mortgage business in the aftermath of the financial crisis. Morgan Stanley bought Saxon in August 2006 for $706m as part of the bank's dive into subprime mortgages.