NEW YORK - MortgageIT, which last year was spun off from the mortgage broker IPI Financial Services Inc., is planning an initial public offering this year.The Internet-only mortgage broker is working with a national network of 120 financial institutions, including Bank of America Corp., Chase Manhattan Bank, Citigroup Inc., and Countrywide. The company is raising $50 million in a second round of venture capital funding that is being managed by Goldman Sachs & Co. and expected to close March 1.

Doug Naidus, co-founder of MortgageIT, 11 years ago co-founded IPI Financial Services, a New York company that closed more than $2 billion in loans last year. Though loan production is declining as interest rates rise, "more and more loans are being originated on the Internet," he said.

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