|Fidelity National Financial Inc. will acquire a mortgage loan servicer.
The Jacksonville, Fla.-based service provider announced today an agreement to acquire LoanCare Servicing Center Inc. for $16 million. The deal is subject to approval by the court overseeing the Chapter 11 bankruptcy of parent LandAmerica Financial Group Inc.
Fidelity sees opportunity to cross sell services between its existing subsidiary, ServiceLink, and LoanCare.
The Norfolk, Va.-based firm sub-services more than 100,000 loans for 90 companies and is the seventh largest U.S. sub-servicer, the statement said. LoanCare was founded in 1983 and acquired by LandAmerica in 2004.
LoanCare saw its primary specialty subservicer rating downgraded to RPS4 from RPS2 in December by Fitch Ratings following LandAmerica's bankruptcy filing on Nov. 26, 2008. Its servicer qusality rating for prime mortgages was lowered in January to SQ4+ from SQ3 by Moody's Investors Service.
As of April 30, 2007, LoanCare reported its mostly Alt-A servicing portfolio at 97,079 loans for approximately $13.6 billion.