Mortgage Daily Logo
mortgage news from industry experts

Mortgage Banking Shuffle

Mortgage Banking Shuffle

Recent mortgage mergers, acquisitions and corporate transactions

September 27, 2006



photo of Coco Salazar
The latest mortgage mergers, acquisitions and corporate activity includes some net branch shuffling and a $275 million mortgage banking acquisition.

Three former mortgage industry executives launched Charlotte, N.C.-based Option 1 Processing, a nationwide contract loan processing service that charges only on funded loans, according to an announcement.

MERS, the national database and registry of residential and commercial loans, elected John Johnson as its chairman. He currently serves as the president and CEO of MortageAmerica Inc. and has served as president of the Mortgage Bankers Association of Alabama.

Ted T. Awerkamp was named president and chief executive of Mercantile Bancorp Inc., according to an announcement. He to succeeds Dan S. Dugan, who retires on March 1, 2007.

Community Bankshares Inc. reported it named Donna Childress president of Community Resource Mortgage. She previously served as the executive vice president and manager of loan operations.

Meanwhile, Freddie Mac reported it assigned James D. Hughes the roles of senior vice president and chief information officer effective Monday. In his new role, the former CIO of National City Corp. will be responsible for managing information systems planning and development responsibilities that support the finance, investment, sourcing, servicing divisions and corporate functions.

IndyMac Bancorp Inc. announced it signed a five-year contract with CEO and Chairman Michael W. Perry.

The new contract, which includes options for five additional years, is structured largely as a pay-for-performance arrangement where incentive compensation is targeted as a percentage of net income. Perry’s 2006 projected incentive compensation is $1.25 million, IndyMac said.

First Horizon Home Loan Corp. announced its portfolio recently reached $100 billion.

Puerto Rico-based Doral Financial Corp. announced it agreed to pay a $25 million civil penalty to settle an SEC probe into the company’s restatement of financial results for 2000 to 2004 in which it was found Doral did not property account for some of its mortgage loan portfolio.

Teledraft Inc., an electronic payment processing company, announced that its holding company completed acquiring a minority stake in privately held, full-service banker First Gothenburg Bancshares Inc.

Residential Pacific Mortgage reported an East Coast expansion with the addition of a new branch in Norwalk, Conn., and another in Murrells Inlet, S.C. The former Residential Finance Solutions branches are reportedly expected to close more than $65 million in home loans this year. Residential Pacific claims to be the largest privately owned mortgage bank in the East San Francisco Bay Area and that it expects to close more than $3 billion in loans and projects.

State National Bancshares Inc. said it scheduled a special shareholders meeting for Nov. 15 to consider and vote on the merger with Banco Bilbao Vizcaya Argentaria S.A.

An amendment to the planned merger of Cadence Financial Corp. and Seasons Bancshares calls for Cadence to pay $16.94 million in cash rather than the original amount of $22 million in cash and stock, according to announcements. As a result of the renegotiation, Seasons will reschedule the shareholder special meeting that was to be held Tuesday.

Sterling Bancorp said it has agreed to sell the business conducted by Sterling Financial Services Company Inc., which includes a loan portfolio of approximately $132 million. The divestiture is anticipated to be completed by year-end and the one-time charge relating to the sale will amount to approximately $8.5 million.

Capital Crossing Bank will be acquired by Lehman Brothers Bank FSB in a deal with an aggregate value of $210 million expected to be completed during the first quarter 2007, an annoucenment said. The move allows Capital to grow its business from a relatively small, publicly traded bank.

Capital will become a division of Lehman and remain headquartered in Boston.

Sterling Financial Corp. today said it has agreed to acquire Northern Empire Bancshares, a $335 million transaction expected to close in the first half of 2007 that will create the third largest community bank in the West.

Among other things, the merger combines Sterling’s strength in business and corporate banking with Northern Empire’s real estate finance expertise, according to the announcement.

Carver Bancorp said on Monday that it received all the regulatory approvals necessary to buy Community Capital Bank and expects to close the deal on Sept. 29.

The acquisition will reportedly complement Carver’s existing real estate mortgage lending activities with expanded small business and nonprofit lending expertise.

Pacific Crest Savings, says on its Web site, that it has sold its mortgage offices to American Home Mortgage Investment Corp.

Freedom Mortgage Corp. completed the $275 million purchase of substantially all the conforming conventional first mortgage loan production assets of Irwin Financial Corp., according to an announcement today.

The transaction reportedly included the transfer of Irwin Mortgage Corp.’s loan origination operations, but excludes its mortgage servicing operations and asset, each of which is being marketed separately.

Coco Salazar is an assistant editor and staff writer for

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...


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