Accubanc Mortgage Corp. has completed the acquisition of Medallion Mortgage Co.
The deal, whose price was not disclosed, will give Dallas-based Accubanc a higher profile on the West Coast and bumps up its servicing portfolio to $6 billion, according to William R. Starkey Sr., chairman.
"We will increase our servicing portfolio by approximately $2 billion and double our number of wholesale and retail offices," he said, adding. "We continue to seek other opportunities and have a strong appetite for continued growth."
Growth, at least in originations, is a hard thing to find these days in home lending. Accubanc's purchase of the San Jose, Calif., mortgage lender comes against a backdrop of layoffs and shutdowns in the industry. In the past week, Wells Fargo Bank, Bank of New York, and Keycorp have all closed lending units and fired staff.
Accubanc will focus on the retail production offices of Medallion, according to Mr. Starkey, including 12 offices in California. The company plans to shut several wholesale offices, including ones in Illinois and Texas. Medallion's servicing rights will be transferred to Accubank's center in Dallas.
Medallion has suffered in the past year because of an emphasis on wholesale production, a line of business that has suffered greatly due to price competition. In the first half of 1994, about 75% of Medallion's loans were purchased from brokers or banks.
In contrast, Mr. Starkey estimates that current production of the combined companies should be 60% to 65% from retail sources.
For the time being, Medallion offices will continue to operate under that name.
With the acquisition completed, Accubank will have offices in 18 states, including Texas, California, Oregon, Colorado, and Idaho.
Accubanc is primarily owned by Interamericas Investments.
Salmon Brothers represented Medallion in the sale.
Barnett Banks has completed the previously announced acquisition of Bancplus Financial Corporation.
Bancplus, based in San Antonio, Tex., Is a full-service mortgage banking company that originates, acquires, markets and services first-mortgage loans secured by residential properties in all 50 states.