Some or all of the ownership interest in several mortgage firms has been acquired by varying investors, including two bank-holding companies. An upcoming acquisition is being investigated by attorneys.
The proposed acquisition of Javelin Mortgage Investment Corp. by Armour Residential REIT Inc. is being investigated by shareholder rights attorneys at
Robbins Arroyo LLP, a March 2 statement said.
Robbins Arroyo said it is trying to determine whether Javelin’s board of directors is taking the necessary steps to ensure that shareholders receive the maximum value and are adequately compensated.
The deal calls for Javelin shareholders to receive $7.14 in cash for each share they hold.
“As an initial matter, the $7.14 merger consideration represents a premium of only 19 percent based on Javelin’s closing price on March 1, 2016,” the statement said. “This premium is below the average one-day premium of nearly 24 percent for comparable transactions within the past year. In the last three years, Javelin traded as high as $20.20 on May 3, 2013, and most recently traded above the merger consideration — at $7.15 — on Aug. 20, 2015.”
1st Portfolio Lending was acquired earlier this year by WashingtonFirst Bankshares Inc. as part of a strategy for Reston, Virginia-based WashingtonFirst to significantly expand its mortgage lending business in the metropolitan Washington, D.C., area.
As part of the final phase of integrating 1st Portfolio Lending, the residential lending unit changed its name to
WashingtonFirst Mortgage on Feb. 8.
On Dec. 14, 2015,
The First Bancshares Inc. announced that it closed on the acquisition of The Mortgage Connection LLC in Jackson, Mississippi.
Founded in 1997 by Margaret and Tony Byrd, The Mortgage Connection has 14 loan originators and additional Mississippi offices in Brandon and Madison.
Margaret Byrd will become senior vice president of mortgage banking at The First Bancshares, according to the announcement.
Late last year, San Francisco-based Lenda announced that it closed on $2 million in seed funding. The financing was led by Lakestar as well as existing Lenda investors including Rubicon Ventures and 500 Startups.
Lenda said it has seen 20 percent month-over-month growth since the summer of 2014 and has processed more than $60 million in loans for borrowers in California, Oregon and Washington.
More states are expected to go live this year.
“Lenda’s software enables homeowners to transparently compare loan options, receive a free credit report, securely upload documentation, and check loan status in real time” the announcement said. “This reduces the traditional time to close from 2 months to 2.5 weeks, saving an average of $20,000 in fees per borrower.”
Mortgage brokerage operations at Loans4Less.com Inc.-controlled Union Discount Mortgage Inc. are being closed down, according to a written statement from Loans4Less.com Chairman and President Steven Mark Hershman.
But with the closing of Redondo Beach, California-based Union Discount, Loans4Less.com, itself, is launching
a nationwide origination business. Loans4Less.com is achieving the expansion through an arrangement with affiliate EPath Digital LP, a digital marketing firm that will generate mortgage leads. Both traditional and reverse mortgages will be originated.
Loans4Less.com, which will operate from EPath’s Laguna Beach, California, location with on-site, licensed loan originators, is in the process of obtaining mortgage broker licenses in 26 states with Hershman acting as the broker of record.
The arrangement included the issuance of cashless warrants to EPath equal to 10 percent of Loans4Less.com, which is
over the counter under the symbol LFLS.
