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MARGARETTEN FINANCIAL SIGNS DEFINITIVE AGREEMENT TO BUY MORTGAGE SERVICING PORTFOLIO FROM NATIONSBANK

 MARGARETTEN FINANCIAL SIGNS DEFINITIVE AGREEMENT
 TO BUY MORTGAGE SERVICING PORTFOLIO FROM NATIONSBANK
 PERTH AMBOY, N.J., July 27 /PRNewswire/ -- Margaretten Financial Corporation (NYSE: MRG) announced today that it has executed a definitive agreement to purchase NationsBanc Mortgage Company of Virginia, a residential mortgage servicing subsidiary of NationsBank Corporation (NYSE: NB). NationsBanc Mortgage Company of Virginia (NMCV), formerly known as Sovran Mortgage Corporation, is based in Richmond. Negotiations leading to this agreement were previously disclosed on July 1, 1992.
 The terms of the agreement call for Margaretten to pay cash to acquire NMCV. The assets of NMCV at the time of acquisition will consist of approximately $7.6 billion of residential mortgage servicing rights, for which the company will pay $134 million, and other assets, which consist almost entirely of receivables and escrow advances, valued at approximately $16 million. Margaretten also will assume the operation of NMCV's loan servicing facility, with over 200 employees. The transaction is expected to close by the end of September 1992.
 Margaretten will finance the acquisition through a combination of existing equity and bank financing. The equity portion will be derived primarily from the proceeds of the company's initial public offering in January 1992. Margaretten has obtained commitments for the necessary bank financing.
 "NMCV is a top quality mortgage servicing operation, generating a relatively high weighted average servicing fee of about 0.42 percent. Its already efficient operations will be enhanced through the economies of scale and technology made possible by consolidation with Margaretten. Their strong management and experienced and knowledgeable work force will provide the platform to support considerable future servicing growth, which is a key element of our strategic plan," said Felix M. Back, Margaretten's chairman and chief executive officer.
 When completed, the NMCV acquisition will more than double Margaretten's servicing portfolio and place it among the leading mortgage servicers in the U.S. NMCV currently services over 135,000 residential mortgages located in 49 states, the District of Columbia and Puerto Rico. At June 30, 1992, Margaretten had a mortgage servicing portfolio of nearly 64,000 units totalling $5.24 billion. Margaretten produced loan volume for the first six months of this year of $3.3 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- 7/27/92
 /CONTACT: David Walke or Joel Herskovits of Morgen-Walke Associates, 212-986-5900, for Margaretten Financial/
 (MRG NB) CO: Margaretten Financial Corporation ST: New Jersey IN: FIN SU:


PS -- NY001 -- 3332 07/27/92 08:20 EDT
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Publication:PR Newswire
Date:Jul 27, 1992
Words:445
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