DALLAS - Associates National Mortgage Corp. has agreed to buy $2.5 billion of servicing rights from U.S. Bancorp Mortgage Co.
The servicing portfolio of Associates, which is part of a finance company owned by Ford Motor Co., will reach $10 billion at the completion of the sale, expected in August. Terms were not disclosed.
Malgum E. Whitt, executive vice president, said the deal is one of Associates' "more significant acquisitions" and "fits with our strategy of acquiring high-quality portfolios from other financial institutionals."
$7.9 Billion Portfolio to Be Retained
U.S. Bancorp Mortgage will be giving up 26,000 conventional mortgages, primarily in Oregon, Washington, and Northern California. The unit of Portland, Ore-based U.S. Bancorp will be left with more than 115,000 mortgages, valued at $7.9 billion, in 50 states.
U.S. Bancorp Mortgage is projecting $4.5 billion of loan originations this year, having grown from less than $100 million in 1985, said Richard Eichhorn, president.
The rapid growth in originations has the company continously assessing "our product mix and servicing to assure a consistently strong portfolio that will support earnings objectives," he said.