IMC Mortgage of Tampa and CFI Mortgage of West Palm Beach, Fla., each bought subprime lending firepower last week.
IMC bought Central Money Mortgage, a Maryland company that has about $120 million in annual originations. CFI assumed the assets of CT Mortgage Corp., an Orlando lender that makes about $55 million of B and C loans each year.
Both transactions were said to involve stock, but terms were not disclosed.
The two Florida mortgage lenders are the latest to buy subprime operations, with seasoned staff rather than set up new units.
Central is the sixth subprime lender IMC has bought this year. IMC got to know it by buying loans Central had originated in the Northeast and Midwest.
"We are very comfortable with their management team and the quality of loans originated," said IMC chairman George Nicholas.
The purchase of CT Mortgage brought CFI production capabilities including a $35 million subprime pipeline.
CFI also got the services of CT Mortgage founder Steve Cox, a veteran B and C lender. CFI named Mr. Cox senior vice president and national sales manager of subprime wholesale lending.
