Contifinancial Corp., the parent of subprime lender Contimortgage, has been steadily growing its origination network by buying up the competition.
The company announced on Monday that it had signed a definitive agreement to purchase Resource One Consumer Discount Co., a home equity lender based in Langhorne, Pa.
Resource One makes home equity loans directly to consumers through 15 retail branches in 10 states. The company specializes in direct mail, television, and telemarketing originations. Resource One's annual loan volume is estimated at $200 million.
Contifinancial made three other deals last month.
In late November, it announced the purchase of 53% of the commons stock of Triad Financial Corp., a subprime auto lender in Huntington Beach, Calif. Contifinancial said it will eventually acquire all of the remaining outstanding stock.
Triad makes car loans through relationships with 1,600 dealerships in 15 states. Annual origination volume is expected to reach $180 million by 1998.
Also in late November, Contifinancial closed its acquisition of United Lending Group, a California-based retail originator of home equity and home improvement loans.
United Lending generates its volume - approximately $30 million a month - through direct marketing in 26 states.
Contifinancial also acquired Royal MortgageBanc, an Orange, Calif., home equity lender, in November.
Royal originates about $20 million per month of subprime home equity loans through 20 retail branch offices in the western United States.
Purchase prices were not disclosed.
