Two separate banking mergers in the Midwest advanced, while a new wholesale lender was launched. Meanwhile, another wholesaler has closed down.
But first, Doug Duncan has left his chief economist position of 15 years with the Mortgage Bankers Association to become vice president and chief economist for Fannie Mae, an announcement said. Prior to his stint with MBA, Duncan worked on Capitol Hill as a LEGIS Fellow and staff member on the Committee on Banking, Finance and Urban Affairs.
Saxon Mortgage Inc. has posted a message on its wholesale lending Web site indicating it is done with broker business.
"Morgan Stanley recently announced a restructuring of the US residential mortgage businesses," the message read. "As a result, we are suspending all third-party originations effective immediately."
Morgan Stanley announced earlier this month it would eliminate around 1,000 mortgage jobs, while subsidiary Saxon recently filed a Worker Adjustment and Retraining Notification Notice with the State of Florida today indicating it would lay off 140 employees. Saxon closed its correspondent channel in August.
Vestin Realty Mortgage II Inc. released a statement indicating it would no longer entertain a mergers with Vestin Realty Mortgage I Inc. The current business environment was cited.
Frandsen Financial Corp. received approval from the Federal Reserve Board Monday to acquire First National Bank of Montgomery. Both companies are based in Minnesota.
MainSource Financial Group Inc. and 1st Independence Financial Group Inc. announced they have agreed to a merger. 1st Independence subsidiary, 1st Independence Bank Inc., will become a subsidiary of MainSource after the expected closing of the deal in the third quarter.
Shareholders of Louisville, Ky.-based 1st Independence will receive $5.475 in cash and 0.881036 shares of Greensburg, Ind.-based MainSource common stock for each share they own, the release said. Based on yesterday's closing prices, the deal is valued at $37 million. Regulators and shareholders must still approve the transaction.
Navidec Financial Services Inc. and Jaguar Group LLC have each contributed $4 million to for a 50 percent investment in a new wholesale lender, the companies said.
The new company, Jaguar Investment Group LLC, services correspondent mortgage bankers in the West, according to the announcement. It also purchase distressed mortgage loan portfolios at discounted prices.
"Jaguar is a premier mortgage wholesaler in our market and is highly regarded as the 'work-out specialist' that liquidates distressed mortgage portfolios in our region," Navidec President John McKowen stated in the announcement. "Real estate brokers, buyers, and investors can locate, rehabilitate and finance distressed residential real estate properties through the services offered by Northsight."