Printer Friendly

JHM MORTGAGE SECURITIES L.P. ANNOUNCES INITIAL EXCHANGE OF UNITS FOR GNMA MORTGAGE SERVICING RIGHTS

JHM MORTGAGE SECURITIES L.P. ANNOUNCES INITIAL EXCHANGE OF UNITS
 FOR GNMA MORTGAGE SERVICING RIGHTS
 MCLEAN, Va., Nov. 5 /PRNewswire/ -- JHM Mortgage Securities L.P. (NYSE: JHM) announced today that it has acquired a $1.3 billion GNMA mortgage servicing portfolio from a major regional savings bank. The acquisition, which was negotiated privately, included the issuance of approximately $6.6 million of JHM units as part of the acquisition cost.
 The transaction was JHM's second GNMA servicing acquisition in the past six months, and the first involving an equity-for-servicing exchange. In March, JHM purchased a $1 billion GNMA servicing portfolio from Dominion Bankshares Mortgage Corporation.
 According to Stephen P. Gavula, chairman of JHM: "The acquisition benefited both JHM and the savings bank. The bank needed to reduce its purchased mortgage servicing portfolio in response to new OTS and FDIC capital limits. We were able to provide it with a market price for its servicing through a combination of cash and JHM units. In addition, the bank will continue to utilize its servicing operations and generate operating income through a subservice arrangement. The partnership obtained a high-quality GNMA portfolio and was able to expand its capital and investor base." Gavula noted that the transaction was reviewed in advance and approved by the Office of Thrift Supervision pursuant to its Dec. 26, 1990, ruling governing thrift investment in JHM units.
 As in the case of its initial $1 billion GNMA servicing acquisition from Dominion, JHM hedged the prepayment risk on the new portfolio through the purchase of a prepayment cap. The prepayment cap insulates JHM's anticipated servicing income against rises in prepayment rates over present levels for the next five years.
 The exchange transaction is the first of what JHM anticipates will be a series of exchange transactions over the next 12 months. "JHM's equity-for-servicing exchange program provides financial institutions with the opportunity to tailor servicing transactions to meet both their capital and business needs," noted Gavula. "We have found that many banks and savings associations are reluctant to sell their servicing because of the loss of future revenues. JHM offers such institutions a unique way to sell portions of their existing, or newly originated, servicing and continue to earn revenues through ownership of JHM units and, in appropriate circumstances, ongoing subservicing arrangements."
 JHM recently registered 5 million additional partnership units with the Securities and Exchange Commission. These units will be available for use in the exchange program.
 In separate news, the company announced that it has named C. Thomas Williamson III president and chief operating officer. Williamson, 38, is one of the original founders of The JHM Group and has served as executive vice president and general counsel since its formation in 1988. He is a graduate of The Johns Hopkins University and received his J.D. degree Order of the Coif in 1978 from the Washington University School of Law. Gavula, who held both the position of chairman and president, will remain chairman and chief executive officer of the company.
 JHM Mortgage Securities L.P. is managed by The JHM Group of McLean, an affiliate of the John Hancock Mutual Life Insurance Company.
 -0- 11/5/91
 /CONTACT: Stephen P. Gavula or C. Thomas Williamson III of JHM Mortgage Securities L.P., 703-749-8230/
 (JHM) CO: JHM Mortgage Securities L.P. ST: Virginia IN: SU: TW -- DC002 -- 1089 11/05/91 08:34 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 5, 1991
Words:563
Previous Article:VONS REPORTS HIGHER THIRD QUARTER EARNINGS FROM OPERATIONS
Next Article:INTERNATIONAL MUREX IN ACQUISITION DISCUSSION WITH WELLCOME
Topics:


Related Articles
JHM MORTGAGE SECURITIES L.P. REPORTS THIRD QUARTER EARNINGS
JHM MORTGAGE SECURITIES L.P. ANNOUNCES 1992 EARNINGS AND FIRST QUARTER 1993 DISTRIBUTIONS
JHM MORTGAGE SECURITIES L.P. REPORTS FIRST QUARTER EARNINGS
JHM MORTGAGE SECURITIES L.P. ANNOUNCES THIRD QUARTER RESULTS AND PROGRESS ON PLAN TO CONVERT TO CORPORATION
JHM MORTGAGE SECURITIES AND PLATTE VALLEY FUNDING ANNOUNCE PROPOSED AGREEMENT
JHM MORTGAGE SECURITIES BOARD APPROVES FINAL AGREEMENT TO ACQUIRE PLATTE VALLEY FUNDING
JHM MORTGAGE SECURITIES L.P. ANNOUNCES CHANGE IN CONTROL OF ITS GENERAL PARTNER AND AGREEMENT TO ACQUIRE PLATTE VALLEY FUNDING L.P.
JHM MORTGAGE SECURITIES L.P. ANNOUNCES FILING AND MAILING OF DEFINITIVE PROXY MATERIALS
JHM MORTGAGE SECURITIES L.P. ANNOUNCES APPROVAL OF ITS ISSUANCE OF OVER 22,000,000 PREFERRED UNITS
JHM MORTGAGE SECURITIES L.P. ANNOUNCES NAME CHANGE TO HARBOURTON FINANCIAL SERVICES L.P.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters