A firm affiliated with American Home Mortgage Servicing Inc. has announced plans to acquire a commercial mortgage lender.
Coppell, Texas-based American Home was created by billionaire Wilbur L. Ross from the remnants of Melville, N.Y.-based American Home Mortgage, which failed in 2007, and Option One Mortgage Corp., which was closed by parent H&R Block Inc. in December 2007.
More recently, Ross invested in The Capital Markets Cooperative, a company whose members originate $25 billion annually.
Now Ross is teaming up with mortgage-backed securities legend Lewis S. Ranieri to acquire an agency multifamily lender.
A news release Monday indicated that private equity funds affiliated with WL Ross & Co. LLC and Ranieri Real Estate Partners LP have agreed to acquire Deutsche Bank Berkshire Mortgage from Deutsche Bank.
No terms were disclosed, and the deal is expected to close by Dec. 31.
Deutsche Bank Berkshire Mortgage, founded in 1988, originates multi-family loans for Fannie Mae, Freddie Mac and the Federal Housing Administration. Its servicing portfolio stands at $28 billion. Headcount is 160 employees.
Jeff Day will continue in his role as chief executive officer of the unit, as will other senior executives.
Ranieri has recently completed his own acquisition.
In June, Ranieri-affiliate Shellpoint Partners LLC acquired New Penn Financial LLC, a growing lender in the nonconforming space.
