IndyMac Bancorp has agreed to sell the majority of its retail operation.
Prospect Mortgage announced today that it will acquire more than 60 branch offices from the Pasadena, Calif.-based company.
Terms of the deal were not disclosed.
Yesterday, IndyMac said it would shut down its wholesale and retail conventional mortgage operations and lay off 3,800 employees as a result of being under-capitalized.
Around 750 employees will make the transition to the new Prospect operation, which will be headed by IndyMac executives John Johnston and Ron Bergum.
“The IndyMac transaction will enable us to increase our investment and success in marketing, technology, and customer service levels,” Prospect Chief Executive Officer Mark Filler said in the statement.
Northbrook, Ill.-based Prospect says it “specializes in acquiring mid-sized residential lenders, providing them with capital, cost-efficiencies, and increased resources while maintaining a decentralized, entrepreneurial business model.” It is a portfolio company of Sterling Capital Partners, a private equity fund group based in Chicago and Baltimore.
Prospect, which was established in 2006, acquired Metrocities Mortgage LLC last year and picked up the retail operations of Opteum Financial Services LLC just prior to that.
Related:
IndyMac Halts New Business
The company formerly owned by Countrywide is taking drastic steps to survive, including laying off nearly 4,000 employees.
