Deutsche Bank buys $18b mortgage business.Deutsche Bank Deutsche Bank AG (IPA: /'dɔɪ.tʃə/[1]) (ISIN: DE0005140008, NYSE: DB) (English: German Bank will acquire Berkshire Mortgage's mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. portfolio, which contains $18 billion and 2,000 properties. The transaction is expected to close in the fourth quarter of 2004. Financial terms were not disclosed. Berkshire, a subsidiary of Boston-based Berkshire Group, is one of the largest privately held commercial mortgage lenders in the U.S., specializing in financing for multifamily properties. The firm is a leading originator Originator A bank, savings and loan, or mortgage banker that initially made a mortgage loan that is part of a pool. Also, an investment bank that has worked with the issuer of a new securities offering from the beginning and is usually appointed manager of the underwriting of government-sponsored enterprise and government-insured multifamily loans Multifamily loans Loans usually represented by conventional mortgages on multi-family rental apartments. , with $3.5 billion of origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real volume in 2003. With a mortgage servicing portfolio of more than $18 billion, Berkshire Mortgage has significant scale and is a top-tier providers of multifamily mortgages in the U.S. "Berkshire Mortgage Finance is a premier name in the multifamily housing sector and this acquisition will give Deutsche Bank a leading position in an important and very attractive market," said Jon Vaccaro, global head of Deutsche Bank's real estate debt markets business. Upon closing, Berkshire Mortgage will become a part of Deutsche Bank's global real estate debt markets group. The Bank has expertise in originating, financing, structuring, securitizing and trading commercial real estate debt. Berkshire Mortgage will advance Deutsche Bank's existing capital market presence in all of these areas. "Our divesture Di`ves´ture n. 1. Divestiture. of Berkshire Mortgage is consistent with our long-term strategy of creating new businesses, growing those business to be market leaders and creating significant value for our equity holders," said Douglas Krupp, chairman of The Berkshire Group. Berkshire has headquarters in Boston, Mass. and platform offices in Bethesda, Md. and Irvine, Ca. The business will maintain its operational headquarters in Boston, as well as its regional facilities. |
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