A company that has made a name for itself investing in structured settlements has made a significant investment in a national mortgage banker.
The J.G. Wentworth Co. is in the business of acquiring structured settlement payments, annuity payments, lottery payments and other receivables.
But now the Radnor, Pa.-based company is expanding its reach into consumer lending with the acquisition of mortgage banking firm.
On Tuesday,
J.G. Wentworth announced that it has agreed to acquire WestStar Mortgage Inc.
The acquisition, which is expected to close in the third quarter, will cost $54 million in stock and cash, with at least three-quarters of the purchase price being paid in cash.
Woodbridge, Va.-based WestStar reports 300 employees located in 15 states. The lender makes conventional and government mortgages in 40 states.
Last year’s originations at WestStar reportedly reached $1.5 billion.
Interestingly, half of WestStar’s 2014 production was sold to third-party institutional investors on the secondary market.
Once the deal is done, WestStar will be re-branded as J.G. Wentworth Home Lending, a division of J.G. Wentworth.
Walter F. Jones, chairman and chief executive officer of WestStar, will continue to lead the organization
from its current Virginia location.
In 2011, J.G. Wentworth-parent
JGWPT launched a reverse mortgage business.
