The mortgage subsidiary of International Business Machines has negotiated a deal to acquire a nonprime servicing subsidiary of Bank of America Corp.
In a news release today, IBM said its Lender Business Process Services Inc. has signed an agreement to acquire the core operating assets of Wilshire Credit Corp. from BoA.
Wilshire was a subsidiary of Merrill Lynch & Co., which BoA acquired on Dec. 31, 2008.
Terms of the deal, which is subject to customary closing conditions, weren’t disclosed.
Mortgage servicing rights currently held by Beaverton, Ore.-based Wilshire will be transferred to BoA. Wilshire serviced 148,428 loans for more than $21.2 billion as of Feb. 28, including $12.7 billion in subprime mortgages, $2.3 billion in closed-end second liens and $2.1 billion in Alt-A loans. Wilshire’s special servicing portfolio was $3.5 billion
Around 900 employees will make the transition to the new owner.
IBM noted that the acquisition “reinforces IBM’s commitment to leveraging the full capabilities and resources of IBM to partner with our financial services clients in solving their most difficult challenges.”
