WaMu to Sell Mortgage Branches

American Home Mortgage Investment Corp. announced today it signed a definitive agreement to acquire certain residential mortgage home loan centers and associated satellite offices that WaMu previously slated for closure.

While no financial terms were disclosed, American Home said it will assume WaMu’s lease obligations and will purchase certain fixed assets in the acquired offices. The transaction will be funded from current cash reserves and is expected to close on Aug. 2.

American Home said it expects the newly acquired origination capabilities “to increase retail loan production and improve the company’s resiliency to the ongoing slowing of mortgage origination activity nationwide.”

The transaction comes after WaMu announced last week that it would close approximately 100 retail lending and loan processing offices in “non-signature” markets that would result in the elimination of 2,500 mortgage jobs by the end of the year.

WaMu said the newly signed agreement allows it to expand its presence “primarily on markets where we can offer customers both home loans and retail banking services.”

“Today’s announcement is a win for all parties,” said Tony Meola, a WaMu executive, in the statement. “We are especially pleased American Home has expressed strong interest in our affected staff.”

The home loan centers and satellite offices are currently supported by about 500 WaMu employees, consisting primarily of sales professionals focused on retail loan originations, and their managers, according to the report. American Home said it is working to hire the employees and expects to pay those it hires sign-on bonuses and other one-time benefits.

“Clearly they represent some of the most talented loan officers, staff and management in the industry,” American Home’s chairman and CEO Michael Strauss said in the announcement. “We expect this group to produce a strong quantity of adjustable loans that can be held in securitized form by our REIT.”

The newly hired staff will reportedly form part of the New York company’s retail channel.

The Seattle-based banking behemoth will retain all the related customers, continue to service the mortgage loans, and fulfill all the loan applications and related commitments that the offices produced while being operated by WaMu, American Home said.