Inland Mortgage Corp. has reached an agreement to buy AR Pacific Mortgage Co., a Concord, Calif., mortgage lender.
All Pacific's top management, including chairman and chief executive officer Herbert B. Tasker, will continue to manage the company under Inland Mortgage.
Mr. Tasker is a well-known executive in mortgage-banking circles and was formerly the president of the Mortgage Bankers Association of America.
"I'm very excited about the alliance," he said in a recent interview, noting that Inland will give All Pacific the strength to weather the current downturn in mortgage lending.
Many mortgage lenders, especially those based in California, are seeking to sell out to banks and financial-services companies.
This year's cutthroat pricing and volatile interest rates have made it increasingly difficult for small mortgage banks to turn a profit.
Consumer preference for adjustable-rate mortgages and growing thrift dominance of this product have also been a problem.
Under the terms of the deal, All Pacific will be paid about $5 million for all of its production network and a portion of its servicing portfolio.
Inland plans to buy about $250 million of rights to service California Housing Finance Authority loans.
Inland hopes to continue to originate that type of state-in-sured loan.
All Pacific plans to sell an additional $500 million of conventional servicing on the open market.
The purchase will mark the first time Inland, a subsidiary of Irwin Financial, Columbus, Ind., has made a foray into the California market.
Though Inland is not usually an aggressive acquirer it was attracted to All Pacific's west coast profile and its management, according to Gregory F. Ehlinger, vice president and treasurer of Irwin Financial.
All Pacific has 39 retail branches in 7 western and north-western states.
Last year the company originated $1.2 billion and has done $0.6 billion during the first three quarters of 1994.
All Pacific branches will continue to operate for a short period under their current name, but as a division of Inland Mortgage.
If the deal goes through, Inland will have 81 retail offices and five wholesale offices in states.
Irwin Financial is a diversified financial-services company. It operates four principal subsidiaries - Inland Mortgage, Irwin Union Bank and Trust Co., Irwin Union Investor Services, and Affiliated Capital Corp.