DES MOINES - Norwest Mortgage Inc. said Monday it had completed its purchase of the $15 billion servicing portfolio and mortgage servicing center of BarclaysAmerican Mortgage Corp., a subsidiary of Barclays Bank PLC.
The previously announced purchase is expected to add immediately to Norwest's earnings per share, the company said. Terms were not disclosed.
"The acquisition of this servicing portfolio allows us to resume relationships with a large group of customers whose mortgages were originated through Norwest Mortgage and who are familiar with our company," said the lender's president, Mark Oman.
Most of the mortgages in the BarclaysAmerican portfolio were originally purchased from Norwest. But the Barclay's unit proved unprofitable and its London parent decided to exit the business.
Mr. Oman said the Barclays servicing center that Norwest Mortgage acquired in Charlotte, N.C., has "significant potential for growth as we expand our presence in the eastern United States."
Des Moines-based Norwest Mortgage, a subsidiary of Norwest Corp., is the nation's largest retail originator of residential mortgages.
It has 683 offices in all 50 states and the District of Columbia that make loans directly to the public, and servicing centers in Des Moines; Minneapolis; Springfield, Ohio; Phoenix; and Southfield, Mich., in addition to Charlotte.
At the end of 1994, Norwest Mortgage had a servicing portfolio of $71.5 billion. Combined with the servicing portfolio of Directors Mortgage, another recent acquisition, and the BarclaysAmerican servicing rights, its own portfolio now totals $99.6 billion.
The Norwest-Directors combination has retail originations of nearly double the nearest competitor, would be second nationwide in total originations, and third in funding loans originated by other banks, according to Norwest's announcement.
The servicing portfolio of just under $100 billion would put it in second place nationally behind Countrywide Credit Industries, Pasadena, Calif.