MINNEAPOLIS - A unit of Norwest Corp. has entered an agreement to provide commercial real estate loan originations with Morgan Guaranty Trust Co. of New York.
The agreement allows Norwest bankers to originate long-term, nonrecourse commercial real estate loans between $1 million and $15 million, which are then sold to the unit of J.P. Morgan & Co.
The loans can be for purchasing or refinancing multifamily, office, office-warehouse, and industrial buildings as well as hotels, mobile home parks, and nursing homes.
After buying the loans, Morgan pools and securitizes them with loans from other participating financial institutions. Norwest earns origination fees and keeps loan servicing rights for additional fee income.
Morgan last year announced a similar arrangement with Banc One Corp.