Contifinancial Corp., a subprime mortgage lender, has acquired a 10% stake in home equity lender Ivy Mortgage Corp.
Ivy Mortgage, headquartered in Belle Mead, N.J., originates about $15 million in home equity and conventional mortgages monthly, through a 33 branch network in the East and Southeast.
Exact terms of the deal were not disclosed, but it includes provisions for Contifinancial to receive up to a 22.5% interest in Ivy Mortgage, pending Ivy's ability to meet volume requirements.
Contifinancial will provide Ivy with warehouse funding to allow for securitization of B and C loans, as well as securitization and bond placement services.
The move is part of Contifinancial's strategy to increase its retail presence, said chief executive James Moore in a written statement.
Ivy's founders Larry and David Gardner will continue to serve as chairman and president of the company, respectively.
- Heather Timmons