GMAC Commercial Mortgage Corp. has agreed to buy Highland Mortgage Co., a specialist in government-insured commercial real estate loans, for an undisclosed price.
Buying the Birmingham, Ala., company would give the General Motors Corp. unit much more capacity for originating Federal Housing Administration and other government loans in the Southeast.
Highland, which is privately owned, originated nearly $500 million of government-insured loans last year from offices in Birmingham, Raleigh, and Richmond, Va. GMAC, of Horsham, Pa., said it was the top originator of Housing and Urban Development loans last year, originating nearly $800 million.
Regulatory and investor approval of the deal, which was announced Monday, are expected next month. The price was not disclosed.
Last year GMAC bought two other government lenders: Continental Securities LLC of Syracuse, N.Y., and RMC Mortgage Inc. of Vancouver, Wash.
The Highland offices are to operate under the GMAC Commercial Mortgage brand. Susan Hall, John "Chip" Moore Jr., Jim Tanner, and Peggy Knisley would continue to manage the offices, which are expected to retain all 15 origination and underwriting staff members.
