Northwest Savings Buys N.Y. Mortgage Firm

WARREN, Pa. - Northwest Savings Bank has signed a letter of intent to purchase Power Funding Group, the largest privately-owned mortgage banking company in Western New York.

Under the terms of the agreement, Power Funding Group will become a wholly-owned subsidiary of the bank's Northwest Mortgage Corp. Approval by the New York State Banking Department is pending.

Said John O. Hanna, president of Northwest Savings Bank: "Borrowers in upstate New York will continue to be able to take advantage of competitive mortgage rates and attractive mortgage programs because, as a part of Northwest Savings Bank, Power Funding Group will be able to draw on the resources of the parent bank and its $1.5 billion in assets.

"The purchase will . . . extend the bank's lending market to include much of New York State, allow Northwest to diversify and improve the quality of the bank's portfolio, and provide the company with the capacity to originate, sell and service mortgages for Fannie Mae, Freddie Mac, and other investors."

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