Chase to Acquire First Town, HomeSouth Mortgage Corporations.

EDISON, N.J.--(BUSINESS WIRE)--Feb. 12, 1999--Chase Manhattan Mortgage Corporation, a subsidiary of Chase Manhattan Corporation (NYSE: CMB) has signed a purchase agreement under which it will acquire the branch networks of First Town Mortgage Corporation and HomeSouth Mortgage Corporation, an acquisition that includes 27 locations and 500 employees. The locations are in New Jersey, New York, Pennsylvania, Georgia, and Florida, including underwriting centers in Secaucus, New Jersey, and Atlanta. Chase is also acquiring First Town's wholesale lending operation, based in Secaucus. First Town and HomeSouth are jointly owned by FJB&B, Inc., a holding company. The transaction, whose terms were not disclosed, is subject to regulatory approval.

Chase will acquire an expanded retail presence in its Tri-State, Mid-Atlantic and Southeast Divisions, as well as the additional underwriting and processing resources housed in the First Town and HomeSouth Underwriting Centers.

"Combining First Town's proven sales, management and operational expertise with our own resources and the powerful Chase brand will give us a significantly expanded presence in key regions," said Thomas M. Garvey, Chase Manhattan Mortgage Corp. Retail Executive. "We are particularly excited about the expansion of our conforming and government production capabilities."

First Town and HomeSouth originated a combined total of $1.4 billion in 1998. With its acquisition of the two companies, Chase projects a tripling of volume in its Georgia territory, with additional significant growth in Florida and New Jersey.

"We believe an exceptional strategic fit with Chase and the strong heritage and values shared by our companies will benefit all of our employees and customers," said Peter Norden, President of First Town and HomeSouth. "We look forward to working with everyone at Chase." Norden will remain with Chase as a consultant.

The transition of the First Town and HomeSouth retail mortgage pipelines to Chase operational platforms is already in progress and is expected to be completed shortly. "Our first priority in this transaction is to work together with our new colleagues to deliver a superior level of service to our customers and referral sources," said Garvey. "Current First Town and HomeSouth customers will find, too, that they experience additional benefits in their relationship with Chase."

Chase Manhattan Mortgage Corporation is a subsidiary of The Chase Manhattan Corporation, with more than $365 billion in assets. Chase Manhattan Mortgage Corporation, with headquarters in Edison, New Jersey, is the nation's third largest residential mortgage lender and third largest servicer. Chase's National Consumer Services franchise serves more than 30 million customers coast to coast and is a leading provider of financial solutions to individuals and small businesses. Chase's website address is www.chase.com.