A California lender has been acquired by a Louisiana bank, $8 million is being invested in an Ohio lender and PNC Bank, N.A., has unloaded a big commercial mortgage lender.
The acquisition of Milestone Mortgage by First Southern Capital Mortgage Bank has closed, a press release Wednesday indicated. Milestone now operates as a DBA of First Southern.
Milestone does business from Manhattan Beach, Calif., primarily in the West and South. It was formerly a division of Aviation Mortgage Partners Inc.
New Orleans-based First Southern is a division of First Southern Capital Development Corp. The company says it is approved by the U.S. Department of Housing and Urban Development as a non-supervised lender. Approvals are reportedly pending with Freddie Mac and Ginnie Mae.
In Ohio, the Home Lending Source announced that it secured a $3 million investment from a private investor, and another $5 million investment is expected. The 10-year-old firm previously operated as Consumers Mortgage Corporation of Ohio. The company said it expects to quadruple its workforce to 250 by the end of this year.
“In order to succeed in today’s environment and to emerge from this real estate cycle as a leader in mortgage lending, we felt that enhancing our capital base needed to be priority one,” Home Lending Chief Executive Officer Doug Reilly stated in the news release.
RED CAPITAL GROUP was acquired from PNC Bank, N.A., by an investment group led by ORIX USA Corp. and including Stonehenge Partners, a statement Monday indicated. Terms of the deal weren’t released.
Columbus, Ohio-based RED CAPITAL was founded in 1990 as a subsidiary of Banc One Corp. by William Roberts, who has been named chief executive officer of the commercial mortgage lender. Subsidiary Red Mortgage Capital, LLC claims to be “the nation’s most active FHA multifamily and healthcare lender” through programs from the Federal Housing Administration and Fannie Mae. The company reports $46 billion in lifetime originations and a $12.5 billion commercial mortgage servicing portfolio.
The 200-employee firm will operate as a subsidiary of ORIX, still under the RED brand, from its current offices in several cities including Chicago, Dallas and San Diego.
A merger between Prime Alliance Solutions Inc. and Dexma Inc. is expected to be completed this year, a May 6 statement said. The two companies have a 10-year working relationship during which they jointly developed Mortgage Lending Suite.
Edina, Minn.-based Dexma, which was founded 15 years ago by Steve Mase, provides its lending platform to more than 1,400 lenders. The company claims its platform has processed more than 6 million loans for around $1.1 trillion.
