ECC Capital Corporation said yesterday that it expects the closing of the sale of its mortgage banking business to Bear Stearns Residential Mortgage Corporation, an affiliate of Bear Stearns & Co., to occur on or about February 9, 2007.
ECC Capital announced October 10, 2006 that it had agreed to sell its subprime wholesale banking division to Bear Stearns in a deal worth $26 million.
Under the terms of the deal, ECC Capital has said it will retain other obligations arising from its
subprime wholesale mortgage banking division, including but not limited to, loan repurchase obligations, remaining leases and personnel related liabilities. ECC Capital said it will also retain the majority of its core assets, including its residual interests in mortgage-backed securities and associated servicing rights.
Bear Stearns has said it intends to continue using the Encore Credit brand name.