Banks continued their buying spree of mortgage firms, with two more deals going down. Two other recent mortgage company acquisitions involve commercial real estate lenders — including one that will reportedly create one of the biggest special servicers of commercial mortgage-backed securities.
Blue Bell, Pa.-based Vision Mortgage Capital was acquired by Continental Bank, an $0.5 billion institution based in Plymouth Meeting, Pa., according to a press release last week. The seller was First National Bank of Chester County.
Vision was formed by former Mortgage Bankers Association chairman Regina M. Lowrie as a division of American Home Bank, which subsequently sold it to First National Bank. Lowrie, who also founded Gateway Funding Diversified Mortgage Services, was named president of the acquired unit.
“We believe there is an excellent fit between our company and Continental Bank and that Vision Mortgage Capital will bring real value to our combined operations,” Lowrie said in the statement
Ameriplex Mortgage said it was acquired by Main Bank. The Albuquerque, N.M.-based lender was founded in 1993. Main Bank, based in the same city, was founded in 1975 and employed just 10 people as of Dec. 31. The banks mortgage holdings included $4 million in home loans and $23 million in commercial mortgages.
The acquisition by Main will enable Ameriplex to expand its staff, improve its customer service and “bring all of the mortgage functions under one roof.”
A March 8 announcement indicated Island Capital Group LLC acquired Centerline Holding Co.’s commercial mortgage servicing business, including a $110 billion CMBS special servicing portfolio, as well as a 40 percent interest in Centerline. In addition, the institutional real estate debt fund management and business was acquired.
The transaction involved the complete financial restructuring of Centerline by eliminating approximately $1.6 billion in debt. It also involved a $100 million equity investment and the restructuring of its business operations. It’s a strategy used by Island Capital Chairman Andrew L. Farkas in 1990 through his company, Insignia Financial Group Inc., which ultimately became “one of the largest owners and operators of real estate in the world, including 350,000 units of multi-family residential housing and in excess of 250 million square feet of office, retail and industrial space,” the statement said.
“This transaction immediately makes the newly created private company one of the largest special servicers of CMBS in the United States, as it is presently the named special servicer for approximately $110 billion of loans in 81 CMBS securitizations,” the companies said, adding that the acquisition creates “one of the healthiest and now most stable companies in its industry.”
Tiptree Financial Partners LP agreed to acquire Care Investment Trust Inc., a March 16 statement said. The deal includes stock and cash and is subject to customary closing conditions.
New York-based Care Investment finances healthcare properties.
The First American Corp. said in a news release Wednesday that it acquired the non-controlling ownership of First American CoreLogic for $144 million, with half paid in cash at the March 29 closing and the other half to be funded through equity in First American Corp.’s Information Solutions Group. The company already held an 82 percent ownership in CoreLogic.
