H&R Block Inc. said it has agreed to buy Assurance Mortgage Corporation of America, an originator of conventional mortgages, for $18 million in stock and cash.
The transaction, announced Friday, is expected to close in the fourth quarter. H&R Block's president and chief executive officer, Frank L. Salizzoni, said the deal would help the company's network of 8,800 tax offices provide a well-rounded portfolio of financial services.
Assurance Mortgage is H&R Block's second mortgage company acquisition deal. In 1997 the company bought Santa Ana, Calif.-based Option One Mortgage Corp., an originator of nonconforming loans. Option One originated $1.9 billion of loans in 1998 and brought in $117.4 million of revenue.
Assurance Mortgage is New England's largest independent mortgage banker for conventional and government loans. It reported closing about $1.3 billion in loans last year.
Assurance Mortgage, which will continue to operate under its current name and management.