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Fairbanks Legacy Laid to Rest

Fairbanks Legacy Laid to RestRecent mortgage industry corporate transactions

August 15, 2005

By COCO SALAZAR

A buyout of the company formerly known as Fairbanks Capital Corp. is among this week’s coverage of mergers, acquisitions and other mortgage industry corporate transactions.

In Milwaukee, Metavante Corp., a provider of banking and payment technologies to financial services firms, completed acquiring GHR Systems Inc.

“As a leading provider of consumer finance and mortgage origination products and services, GHR will bring one of the most proven technology and market-leading solutions to our clients,” said Frank Martire, Metavante president and CEO, in a written statement.

The Wayne, Pa.-based originator will reportedly be a subsidiary of Metavante.

American Home Mortgage Investment Corp. announced that it will sell 9 million shares of its common stock at $35.50 per share in a public offering expected to close today.

The New York-based lender said it additionally granted the underwriters it entered into agreement with an option to purchase an additional 1.35 million shares of common stock to cover possible over-allotments.

The offering will reportedly provide the real estate investment trust with proceeds of $319.5 million before underwriting discounts and commissions and other expenses.

Marshall BankFirst recently announced it created Residential Mortgage Group, which specializes in providing structured residential mortgage products for local, regional and national mortgage companies and community banks.

“We offer a full span of portfolio and niche products covering a broad range of borrower segments,” said the new unit’s Managing Director Matt Steensland in the announcement. “Our ability to finance developers, builders and home buyers delivers a complete solution.

Fleetwood Enterprises Inc. said it closed two previously announced transactions.

The Riverside, Calif.-based producer of recreational vehicles and mobile homes said it sold substantially all of the manufactured housing loan portfolio of HomeOne Credit Corp. to Vanderbilt Mortgage and Finance Inc. for approximately $75 million.

Concurrent with the closing of the sale, HomeOne retired the outstanding balance of about $46 million on its warehouse line with Greenwich Capital Financial Products and paid $750,000 in fees for terminating the facility early.

The second transaction was the purchase by two Clayton Homes Inc. divisions, other than Vanderbilt, of substantially all the operating assets of Fleetwood’s mobile housing retail operations for $74 million, according to the announcement.

“We are pleased that these transactions were accomplished quickly, and our Housing Group can now concentrate fully on designing, manufacturing and wholesaling affordable homes,” Fleetwood CEO Elden Smith said in a written statement.

Credit Suisse First Boston has agreed to purchase 100% of the outstanding shares of SPS Holding Corp. and its subsidiary Select Portfolio Servicing Inc., according to an announcement Friday.

For the sale of its outstanding stock in SPS, PMI Group Inc. will receive about $102 million at the closing and payments from certain mortgage servicing right. It will additionally receive monthly cash payments through the first quarter of 2008 from a residual interest in mortgage servicing assets with an estimated book value of $18 million, the announcement said.

Purchase of the Salt Lake City-based servicer, which was formerly known as Fairbanks Capital Corp. and services approximately 270,000 nonprime loans, is reportedly scheduled to close in the fourth quarter.

Fairbanks previously faced bad press, litigation and government investigations over its servicing practices, but successfully took steps to put the servicing problems behind it.


Coco Salazar is an assistant editor and staff writer for MortgageDaily.com.E-mail: s3celeste@aol.com

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