GMAC Mortgage, the mortgage finance subsidiary of General Motors, has cut a deal to buy lender Di-Tech Funding Corp., sources said.
Analysts estimated that GMAC would pay $100 million to $150 million for Di-Tech of Irvine, Calif., which originated about $2 billion of loans last year. The deal is expected to be announced early this week.
Officials from Di-Tech and GMAC Mortgage declined to comment.
Analysts said GMAC is trying to build up its origination business to balance a servicing operation that has grown to $131 billion. DiTech makes conventional, subprime, and high-loan-to-value loans, using the Internet and television ads to bring in customers.
Last June, Di-Tech filed with the Securities and Exchange Commission for an initial public offering. The IPO was withdrawn when the market for high- loan-to-value loans collapsed.