Contifinancial Corp., a leading originator, securitizer, and servicer of home equity loans, said it has made an investment in Crown NorthCorp.
Contifinancial will receive series BB convertible preferred stock and warrants to purchase additional shares of common stock in Crown. The preferred stock, when converted, and the warrants, when exercised, will represent approximately 7% of Crown's common shares.
Crown, based in Columbus, Ohio, is an international financial services firm which originates commercial mortgages and provides asset management and loan servicing capabilities.
Crown said it intends to use the investment proceeds to expand its mortgage lending operations, either by internal growth or acquisition. Scott M. Mannes, executive vice president of Contifinancial, will join Crown's board of directors.