Chase Manhattan Mortgage Corporation to Acquire Advanta's Mortgage Business.Business Editors EDISON, N.J.--(BUSINESS WIRE)--Jan. 8, 2001 Chase Manhattan Mortgage Corporation, a subsidiary of J.P. Morgan Chase & Co. (NYSE NYSE See: New York Stock Exchange : JPM JPM J. P. Morgan Chase & Co. (stock symbol) JPM Juan Pablo Montoya (formula 1 driver) JPM Jabatan Perdana Menteri (Malaysia) JPM Journal of Property Management ) has signed a definitive agreement to acquire the mortgage business of Advanta Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ADVNB; ADVNA ADVNA Advanta Corporation (stock symbol) ). The acquisition includes a $15.8 billion mortgage loan servicing Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type loan and the terms negotiated between the firm and the investor seeking their services. and subservicing portfolio with over 200,000 customers and other net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. . Advanta also has an annual origination capability in excess of $1 billion. The proposed acquisition will supplement Chase's origination activity in the non-prime mortgage business and enhance Chase's position as a leading originator of non-prime mortgages in the country. The Advanta non-prime servicing portfolio is one of the largest in the nation and includes Chase's non-prime portfolio, which Advanta has been subservicing. The acquisition is subject to approval of Advanta's shareholders and certain regulatory filings and approvals. The transaction is expected to close in the first quarter of 2001. Chase and Advanta will work together to ensure a seamless transition for Advanta customers. "Extending mortgage credit to traditionally under-served groups using sound principles and practices for granting and securing credit is the foundation of fair and prudent lending," said Luke Hayden Luke Patrick Hayden (1850–June 23 1897) was Irish Nationalist Member of Parliament for South Leitrim from 1885 to 1892 and for South Roscommon from 1892 until his death in 1897. He was Chairman of the Town Commissioners of the borough of Roscommon from 1880 until his death. , Executive Vice President, J.P. Morgan Chase & Co. "This acquisition will expand Chase's platform, enabling us to better serve borrowers who do not meet traditional credit standards Credit Standards The guidelines a company follows to determine whether a credit applicant is creditworthy. ." Chase Manhattan Mortgage Corporation, with headquarters in Edison, New Jersey Edison Township (usually known as Edison) is a township in Middlesex County, New Jersey, United States. As of the United States 2000 Census, the township had a total population of 97,687, making it at the time the fifth largest municipality in New Jersey. As of the U.S. , is currently the nation's largest residential mortgage lender and second largest servicer. In addition to non-prime, the Chase home finance businesses include traditional first mortgage, home equity and manufactured housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected loans. "This strategic transaction is an excellent outcome for our shareholders, customers and employees," said Dennis Alter, Chairman and Chief Executive Officer of Advanta. "This is a cash transaction pursuant to which we expect to receive a price in excess of book value. The sale will monetize the value of our mortgage business and provide all of the opportunities and resources of a respected, global organization to our employees and customers. It also will enable Advanta to further concentrate on the small business market, primarily through its profitable credit card business, already one of the nation's largest issuers of Master Card business credit cards to small businesses." Advanta has a national retail and wholesale presence, as well as phone sales units and servicing sites in San Diego and suburban Philadelphia. Advanta has approximately 1800 employees working in its mortgage business. Chase Manhattan Mortgage Corporation is a subsidiary of J.P. Morgan Chase & Co. (NYSE: JPM)(www.jpmorganchase.com), which is a premier global financial services firm with assets in excess of $705 billion and operations in over 60 countries. The firm is a leader in investment banking, asset management, private equity, consumer banking, private banking, e-finance, and custody and processing services. Headquartered in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , J.P. Morgan Chase serves 32 million consumer customers and over 5,000 corporate, institutional, and government clients. Advanta has been providing financial services to consumers and small businesses since 1951. Advanta leverages its first-class direct marketing and information-based expertise to develop state-of-the-art warehousing and statistical modeling tools that identify potential customers and new target markets. It also offers its customers and business partners a broad range of self-service financial solutions and other services on the Internet at www.advanta.com This Press Release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The most significant among these risks and uncertainties are: (1) the timing and closing of the transaction described in this Press Release; and (2) the approval of the transaction by regulatory agencies and Advanta shareholders. J.P. Morgan Chase & Co. 270 Park Avenue, New York, NY 10017-2070 NYSE: JPM www.jpmorganchase.com |
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