A nonprime wholesale lender based in the San Diego area has been acquired by a national branch operator.
Shearson Financial Network will acquire the assets and operations of Dollar Mortgage Corp., according to an announcement today.
The deal, which calls for Dollar shareholders to receive more than $1 million in cash and stock, is expected to close this month, Shearson said.
On its Web site, La Mesa-based Dollar touts Alt-A broker programs including 100% loan-to-value with stated income, stated income with a 660 credit score and no-income no-asset to 95 LTV. Second mortgages go to 100% LTV, while subprime programs allow credit scores down to 550.
"Dollar is a fast-growing provider of residential mortgages and is a licensed mortgage banker in over 40 states," the press release said. "It employs fifty-five people and is funded through its mortgage bank business, which registered in excess of $300 million during 2006."
Las Vegas-based Shearson calls itself a consolidator of independent mortgage brokerages. The company has entered into numerous joint ventures recently, and it acquired Allstate Funding and EHomeCredit Inc. last year. In addition, it recently launched an initiative to work with warehouse lenders and small mortgage banks to resolve their problem loans.
"As we are able to provide resources to Dollar to expand its client base, Shearson has a unique opportunity to expand in a market that has been shrinking," Shearson Chairman and CEO Michael Barron said in today's statement. "Dollar has been well managed and has escaped the fate of others during the subprime collapse."