Chemical Banking Corp. said Wednesday that it had received Justice Department approval for the planned acquisition of mortgage bank Margaretten Financial Corp.
The approval was expected. Approvals from Fannie Mae, Ginnie Mae, and Freddie Mac are still pending.
Chemical said in early May that it would pay $330 million for Margaretten, based in Perth Amboy, N.J., one of the largest and oldest mortgage banks in the country.
The deal is expected to make Chemical the fourth-largest originator of mortgages nationally. It is currently the seventh-ranked mortgage originator. The transaction will increase Chemical's mortgage-servicing portfolio by more than 40% to $54.5 billion in loans.
Chemical said the Justice Department had granted early termination of the waiting period mandated by the Hart-Scott-Rodino Antitrust Improvements Act.
The expiration of the waiting period was a condition of Chemical's tender offer for shares of Margaretten's common and preferred stock.