Current Issue
TMSF Holdings, Inc. said today that it has entered into an agreement to acquire certain assets of the wholesale division of Folsom, Calif.-based Central Pacific Mortgage.
The assets being acquired by TMSF include six wholesale branch offices with total staff of about 80 operations and sales personnel, the company said. The branches to be acquired are located in San Diego; Walnut Creek, Calif; Seattle; Phoenix; and two offices in Oregon.
The CPM-Wholesale business is currently originating monthly volume of approximately $180 million in conforming, jumbo and Alt-A loans. with approximately 55 percent of loan volume classified as Alt-A paper, with the remaining 45 percent being prime and other loans. Neither company provided details regarding the volume of subprime loans originated by CPM’s wholesale channel.
“We are excited about the synergies this acquisition brings,� stated Raymond Eshaghian, CEO of TMSF Holdings, Inc. “It provides us with a cost-effective way to approximately double our production volume. Moreover, this transaction brings together two individually successful business models. The combined company will benefit from shared operating efficiencies and the pursuit of best practices.�
TMSF Holdings’ plan includes launching the integration on March 1, 2007. The company said it will create a new division, CPM Mortgage Services, which will retain the current CPM-Wholesale employees, and that TMSF will not assume any pre-closing loan repurchase obligations of CPM-Wholesale.
The move to keep pre-closing loan repurchases separate comes as numerous subprime lenders are being hit with repurchases from Wall Street banks providing the warehouse credit facilities used to finance most wholesale lending operations.
For more information, visit http://www.centralpacificmortgage.com.
