Berkshire Mortgage Acquires Bankers Mutual of California for $40 Million.

Business Editors

BOSTON--(BUSINESS WIRE)--June 30, 2000

Berkshire becomes the largest privately-owned commercial mortgage-banking firm in the country with a servicing portfolio of $10

billion

Berkshire Mortgage Finance, a Boston-based national mortgage banking firm, today completed the $40 million acquisition of the Irvine, Calif.-based Bankers Mutual, making Berkshire the nation's largest privately-owned commercial mortgage banking firm, with a servicing portfolio of $10 billion with 1,500 loans in 45 states.

Berkshire Mortgage Finance and Bankers Mutual, a division of Bay View Capital Corporation, are both commercial mortgage banking firms specializing in multifamily financing under the Fannie Mae DUS Program and the Freddie Mac Program Plus(R) network.

The combined entity originated over $2.5 billion from 12 origination offices last year. In 1999, Berkshire alone closed $2 billion in financing, less than 15 percent of which was in the state of California. Two of Berkshire's strategic goals have been to increase California loan originations and to become a dominant multifamily lender.

Peter Donovan, CEO of Berkshire Mortgage, said that this acquisition helps Berkshire meet both of these goals. Bankers Mutual originated a total of $1.7 billion in 1998 and 1999, over 95 percent of which was in California.

"The combination of these two firms was a natural fit given our similar corporate cultures, our focus on GSE (Government Sponsored Enterprise) and HUD multifamily lending, and synergistic geographic locations," said Mr. Donovan. "We have known Bankers Mutual and the key employees as high quality competitors for many years and are thrilled to have them become part of our team. The opportunity to join forces with an acknowledged leader in the Fannie Mae and Freddie Mac lending community is extremely exciting for us."

Established in 1980, Bankers Mutual is the "Lender of Choice" for many of the industry's apartment owners in California. Their focus on high quality service has resulted in more than $4 billion in multifamily loans.

"This partnership with Berkshire will further enhance the loan programs and services we provide to our borrowers," said Bryan Frazier, President of the Bankers Mutual division. "We are pleased to be a part of such a high quality organization. As a respected competitor for the past 13 years, we have a strong admiration for the Berkshire team and are very excited about the opportunities ahead."

Trent Brooks, who will serve as Managing Director added, "The combination of Berkshire and Bankers Mutual is a very positive event for the industry, the employees and especially the borrowers."

Founded in 1987, Berkshire Mortgage Finance is a full service, national mortgage banking firm. Berkshire Mortgage Finance provides real estate financing nationwide for income properties with an emphasis on multifamily.