DALLAS - Amresco Inc. said Friday that it had agreed to sell its home builder lending and servicing division and other assets to Prism Financial, a unit of Royal Bank of Canada.
The division will become part of Prism Mortgage Co.
The price was not disclosed, but Prism is to pay a portion at the closing, which is expected in the fourth quarter, and the balance over 18 months.
Amresco, once active in both commercial and residential real estate lending, has been divesting itself of those businesses and now bills itself as a "small and middle-market business lending company."
Prism, a major retail mortgage bank and broker, was bought by Royal Bank of Canada last year.
Also on Friday Amresco said that the maturity date on its $7.2 million senior revolving credit facility had been extended to Sept. 14 from Aug. 18.
The Dallas company has drawn $1.2 million on the credit line.
Amresco said it is "in the process of identifying alternative sources of liquidity to meet its upcoming capital obligations."