Mortgage Daily Logo
mortgage news from industry experts

BoA Restatement Tops Corporate Mortgage Activity

BoA Restatement Tops Corporate Mortgage Activity

Recent mergers, acquisitions & other corporate activity

February 28, 2006

By COCO SALAZAR

photo of Coco Salazar
As a large Canadian mortgage franchise operation readies itself for expansion in the U.S., one of the biggest American banks announced it will restate income upward.

Arkansas-based American Mortgage Associates Inc. confirmed to MortgageDaily.com that it moved its headquarters from Fayetteville to Bentonville, where it has been at for one week.

MortgageBrokers.com Inc. announced Monday it acquired Your Mortgage Connection, which is comprised of more than 33 independent, licensed mortgage brokers, and expects to generate $350 million in mortgage origination volume in 2006.

“We believe this acquisition will provide us with immediate top-line growth of $3.8 million in annual gross revenues and an additional mortgage origination volume opportunity,” said MortgageBrokers owner Alex Haditaghi in the announcement.

Because Your Mortgage Connection currently serves some Toronto, Canada-based RE/MAX Ontario-Atlantic Canada franchisees, MortgageBrokers’ “unified platform provides us with a unique opportunity to substantially expand our business through cross-marketing, providing additional resources and gaining greater access to desirable real estate markets in Canada and soon in the U.S the merger creates tremendous synergies with our long-term licensing and marketing agreement with RE/MAX.”

The Bank of Georgia received a loan guarantee from the Overseas Private Investment Corp. that will enable it to provide residential mortgage lending. The guarantee by Overseas Private is supporting a $10 million loan facility by WorldBusiness Capital Inc.

The Federal Reserve approved for Sky Financial Group Inc.’s request to acquire up to 10 percent of the voting shares of LNB Bancorp Inc. — and indirectly acquire an interest in the Lorain National Bank.

The transaction must be consummated before June, according to the Fed’s approval order document.

American Mortgage Acceptance Co. announced its chief operating officer, John Garth, will be stepping down from his position the end of the first quarter to pursue other opportunities.

“John was a valued member of the [America Mortgage] team and we will be sorry to see him leave,” said, Marc D. Schnitzer, company president, in an announcement. “While we are actively searching for a new head of loan originations for [American Mortgage], we do not anticipate any disruption in the execution of [American Mortgage’s] business plan.”

Bank of America said it will restate financial statements going back to 2002 to adjust the accounting for certain derivative transactions used in its hedging strategies to manage interest rate risk and foreign exchange exposure.

The restatement, which relates to Statement of Financial Accounting Standards 133, will increase earnings by a cumulative $345 million and adjust shareholders’ equity to be adjusted upward by $308 million, or less than 1 percent, as of Dec. 31, 2005.

“The interpretations of how to apply SFAS 133, a quite complex standard, continue to evolve,” said Alvaro de Molina, Bank of America chief financial officer. “In light of recent interpretations, we reviewed our accounting treatment of certain hedge transactions and determined a restatement would assure that our financial statements adhere to the most recent guidance for accounting treatment of hedge transactions under SFAS 133.”


Coco Salazar is an assistant editor and staff writer for MortgageDaily.com.e-mail: MortgageWriter@aol.com

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION