MBNA Steps Deeper Into CUIndustry

April 14, 2005, 1:00 a.m. EDT 1 Min Read

WILMINGTON, Del. - (04/14/05) -- MBNA Corp. said Wednesday it hasextended its reach into the credit union market with an agreementto acquire Nexstar Financial Corp., a St. Charles, Mo.-based homeloan outsourcer for more than 100 credit unions. The deal willallow MBNA to offer private label co-branded home-equity loansthrough its more than 5,000 affinity partners. Nextar was foundedin 1999 by a group of mortgage industry veterans, includingCiticorp's Rick Thornberry, and wll-known buyout firm KohlbergKravis Roberts & Co. Terms of the deal were not disclosed.MBNA, the nation's largest credit card bank, recently beganoffering co-branded credit cards to credit unions and expects tohave as many as 80 credit union partners by mid-year.

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