Sources: Residential Finance and PMAC close to deal
PMAC could take on troubled RFC assets, executives
[Update 1: The headline first referred to Penny Mac, when PMAC is involved in the deal. PMAC is a private company, PennyMac is public. This is now corrected.]
Two sources tell HousingWire that Residential Finance Corp. is close to closing a deal to join national, private lender PMAC.
It’s unclear at this time if this is a merger, as one source calls it, or a “shocking acquisition” of assets as our second source put it, though he added that after some reflection the deal seemed to make more sense.
A call to Residential Finance Corp. co-founder and general counsel David Stein was not returned at press time.
Stein is listed as a Roundtable Leader for the Mortgage Bankers Association of Florida’s conference in Orlando that begins Wednesday.
Observers speculate he may be replaced as the deal was being finalized for announcement this week, but as of late afternoon Tuesday, conference organizers said he was still on the agenda.
Residential Finance has been struggling over the past year as originations fell sharply, and the company closed 15 branches and sold off mortgage servicing rights for operating capital.
Last fall the company closed an operations center in Charlotte, N.C., which hosted 22 employees and had opened just one year before.