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FBR Now an Originator

FBR Now an OriginatorRecent mergers include management buyout

February 21, 2005


Recent mergers include the closing of an investment banker’s acquisition of an originator and a management buyout.

Friedman, Billings, Ramsey Group Inc. announced Wednesday it completed the acquisition of 100% of the equity interest of First NLC Financial Services LLC.

Friedman had previously announced it would pay $88 million in cash and stock for the nonconforming originator, but the total was finalized at $101 million. The price adjustment was the result of an $11 million increase in the tangible net worth of the seller and more than $100 million of additional loans on its balance sheet at closing, it said.

At closing, Friedman picked up a mortgage portfolio of approximately $475 million.

The Arlington, Va.-based investment banker said the acquisition was part of a broader strategy to expand the types of mortgage assets it owns in its real estate investment trust portfolio — keeping for portfolio a significant portion of First NLC’s originated loans and financing them through the issuance of asset-backed securities.

First NLC, of Deerfield Beach, Fla., operates through wholesale and retail channels with a current origination run rate exceeding $4 billion annually. Its current executive team will continue managing the unit, which will operate as a wholly owned subsidiary and form part of Friedman’s principal investment group, according to the announcement.

Also on Wednesday,, a provider of construction-inspection services for mortgage lenders, announced that its upper management completed a buyout of the company.

Donald Giebelhausen took over the business Joseph Adams and Philip Mikal started three years ago. The new owner, who has been involved in the construction industry since 1984, joined the Scottsdale, Ariz.-based company in 2002 as director of inspection services and managed the day-to-day operations and administration of inspection personnel, according to the announcement.

Outgoing owners Adams and Mikal will reportedly still work with the new owner.

“I am happy that existing management completed this buyout since they have so much more invested in the company than any outsider would have brought to the table,” Mikal said in the announcement.

Coco Salazar is an assistant editor and staff writer for

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