BofA to buy reverse-mortgage business
MSN Money, April 26th, 2007
Bank of America Corp. has agreed to buy the reverse-mortgage
business of Seattle Mortgage Co., a subsidiary of Seattle Financial
Group Inc.
Seattle Mortgage markets its reverse mortgages under the name Reverse Mortgage of America.
Charlotte-based BofA (NYSE: BAC) has been piloting reverse-mortgage products with customers in Arizona since November.
"Seattle
Mortgage has been a pioneer in developing mortgage products and
services that address the senior population's growing need for greater
financial liquidity," says Floyd Robinson, president of BofA consumer
real estate. "This is in line with Bank of America's desire to grow its
consumer real estate business by utilizing our significant advantages
in size and scale."
Financial terms of the transaction weren't announced.
The deal is slated to close in the second quarter, pending regulatory approval.
Seattle
Mortgage entered the reverse-mortgage industry in 1995. It has a loan
portfolio of 40,000 reverse mortgages, totaling more than $4 billion in
outstanding balances. Approximately 400 Seattle Mortgage employees will
join BofA, including a retail sales force of more than 200 in 25 states
and the District of Columbia.
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