Green Tree deal has tradeoffs for buyer

Walter Investment Management Corp. announced last week it will pay just more than $1 billion to buy a Minnesota loan servicer. Now investors in the Tampa-based company may be wondering what they're getting in return.

Shares of Walter Investment on the American Exchange fell 13% the day of the announcement, rebounding slightly to $17.25 the next day. The stock had reached a 52-week high of $20.22 earlier in March.

Walter Investment, the last remaining local segment of Jim Walter's former corporate empire, said March 28 it will acquire Green Tree Credit Solutions in a deal combining stock, debt and cash. Green Tree, based in St. Paul, Minn., provides third-party services on credit-sensitive consumer loans. That contrasts with Walter Investments' business model, which largely focuses on interest income.