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MARGARETTEN FINANCIAL IN NEGOTIATIONS TO PURCHASE A MAJOR MORTGAGE SERVICING PORTFOLIO FROM NATIONSBANK

 MARGARETTEN FINANCIAL IN NEGOTIATIONS TO PURCHASE
 A MAJOR MORTGAGE SERVICING PORTFOLIO FROM NATIONSBANK
 PERTH AMBOY, N.J., July 1 /PRNewswire/ -- Margaretten Financial Corporation (NYSE:MRG), a leading residential mortgage banker, announced today that it has entered into negotiations to purchase NationsBanc Mortgage Company of Virginia (formerly known as Sovran Mortgage Corporation), a subsidiary of NationsBank Corporation (NYSE: NB). The proposed transaction is subject to the signing of a definitive purchase agreement and related conditions, and is expected to close by the end of the third quarter. At the projected closing date, the assets of the acquired company will consist primarily of $7.5 billion of residential mortgage servicing rights and a 200-plus employee mortgage loan servicing operation with related assets, located in Richmond, Va. The transaction, when completed, would more than double Margaretten's servicing portfolio and place it among the leading mortgage servicers in the U.S. No assurance can be given that the negotiations will result in a completed transaction.
 Felix M. Beck, chairman and chief executive officer of Margaretten, stated, "One of our top priorities has been to substantially increase the size of our servicing portfolio, which is a source of stable fee income and predictable cash flow. Our proposed acquisition would not only accomplish this goal, but would provide the capacity to support considerable future growth and enhance the cost-efficiency of our servicing operations."
 At May 31, 1992, Margaretten's portfolio of mortgages serviced for investors totaled $5.06 billion. The company produced loan volume for the first five months of this year of $2.8 billion.
 Margaretten Financial Corporation, through its mortgage banking subsidiary, Margaretten & Company, Inc., engages in the origination, purchase, sale and servicing of residential mortgage loans. Its Retail Division maintains 58 branch offices in 18 states, and its Wholesale Division operates primarily in California and Texas.
 -0- 7/1/92
 /CONTACT: Michele Katz or Edward Nebb of Morgen-Walke Associates 212-986-5900, for Margaretten Financial Corporation/
 (MRG NB) CO: Margaretten Financial Corporation; NationsBank Mortgage Company ST: New Jersey IN: FIN SU: TNM


AH -- NY013 -- 5494 07/01/92 08:33 EDT
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Publication:PR Newswire
Date:Jul 1, 1992
Words:345
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