<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
Date of Report: December 20, 1996
Source One Mortgage Services Corporation
(Exact name of registrant as specified in its charter)
Delaware 1-12898 38-2011419
- ---------------------------- ------------------------ -------------------
(state or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
27555 Farmington Road
Farmington Hills, Michigan 48334-3357
- -------------------------- ----------
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code: (810) 488-7000
Total Pages: 3
<PAGE> 2
ITEM 5. Other Events.
Source One Mortgage Services Corporation has accepted a bid to sell $19
billion of mortgage servicing rights to Chase Manhattan Mortgage Corporation.
When the transaction closes early in 1997, Source One will retain subservicing
on the portfolio for up to three years. The ultimate value of the transaction,
arranged through Cohane Rafferty, will be determined when a definitive purchase
and sale agreement is executed. The deal is also subject to the normal due
diligence, regulatory and agency approvals.
After the transaction, Source One will continue to own a servicing
portfolio of approximately $10 to $12 billion in 1997, while the new
subservicing agreement together with subservicing contracts already managed by
Source One will make Source One one of the largest mortgage subservicers in the
nation. Source One, recognized for the quality and low cost of its servicing
operations, has been actively soliciting subservicing from mortgage bankers
seeking to reduce costs or improve quality.
Over the last six months, Source One has been conducting an extensive
strategic review. Some of the options are still evolving. Source One has
identified subservicing as a key element. Source One CEO, Jim Conrad, said,
"We are pleased to be forming an alliance with a solid industry leader. We
look forward to serving additional high quality subservicing partners."
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunder duly authorized.
SOURCE ONE MORTGAGE SERVICES
CORPORATION
Date: December 20, 1996 By /s/ Michael C. Allemang
--------------------------------------
Michael C. Allemang
Executive Vice President and
Chief Financial Officer
