Bank of Virginia (BOVA) in Midlothian is committing more than $80 million to two programs involving federally backed debt.
The $180 million-asset company said Wednesday that it will invest $60 million in Stonegate Mortgage's residential loan program, which packages and sells mortgages primarily to government-sponsored entities. The program is a short-term purchase-and-sale agreement similar to a reverse-repo. Bank of Virginia
Bank of Virginia also said it would buy a $23 million portfolio of student loans backed by the federal government. It is working with GradCapital, which provides financial advice to colleges and universities, and the student loan servicer Xerox Education Services on the purchase of the student loan portfolio.
"We are being opportunistic in leveraging the depth and experience of the Bank's board of directors and our credit and lending team led by President Richard Dickinson," Jack Zoeller, the company's chairman and chief executive, said in a press release. "We continue to seek high quality loans to support our targeted growth of approximately $100 million in assets beginning in late 2012."
