Printer Friendly

PLAZA HOME MORTGAGE ANNOUNCES COMPLETION OF ACQUISITION OF SANDIA MORTGAGE CORP.

 Doubling of Plaza Loan Servicing Portfolio to $6.5 Billion
 Expected to Positively Impact Earnings Capacity
 SANTA ANA, Calif., June 28 /PRNewswire/ -- Plaza Home Mortgage Corp. (NASDAQ: PHMC) today announced that it has completed the previously announced acquisition of Sandia Mortgage Corp., a privately owned mortgage loan servicing company based in Albuquerque, N.M.
 Jack French, chairman and chief executive officer, said, "The Sandia acquisition fits nicely with our overall strategy to grow and build shareholder value through expansion, diversification and acquisition. We are increasingly convinced the efficiencies and economies of scale achieved as a result of this acquisition will have a significant positive impact on our future servicing income. Efforts to effect a smooth consolidation of loan servicing portfolios, servicing platforms and other assets are already underway and expected to be completed by late September.
 "Plaza will continue to evaluate and aggressively pursue other expansion opportunities in the mortgage banking marketplace that can offer earnings leverage and operational benefits similar to the Sandia deal," French added.
 Under the terms of the Sandia transaction, as disclosed on May 25, Plaza purchased all of the outstanding Sandia shares for $6.5 million in cash, up to 600,000 shares of Plaza common stock and the assumption of approximately $40 million of outstanding Sandia liabilities. Plaza acquired Sandia's $3.3 billion residential loan servicing rights portfolio and other assets including their Albuquerque loan servicing facility, receivables, escrow advances, property and equipment. The number of Plaza shares to be issued is subject to later downward adjustment based upon the performance of the Sandia loan servicing portfolio.
 French, in his earlier comments, said, "The more than doubling of our loan servicing portfolio will substantially boost that source of non-cyclical income. Additionally, we believe the Sandia portfolio has excellent value due to the high quality of the loans it contains, and its 48-state diversity will complement our existing portfolio and broaden it geographically. We expect to significantly lower our per- loan servicing costs as economies of scale are realized and servicing operations are consolidated and streamlined."
 Plaza Home Mortgage is a mortgage banking company specializing in the origination, sale and servicing of one to four-family residential mortgage loans. Plaza conducts mortgage banking activities through its 27 loan origination offices in eight states, and is ranked the ninth- largest mortgage loan originator in California, the 22nd-largest nationwide.
 For information on Plaza by fax, dial 800-PRO-INFO, ext. 132.
 -0- 6/28/93
 /CONTACT: Brad Morrice, executive VP and general counsel of Plaza Home Mortgage, 714-564-8036; or John H. Shaw (LA), 818-783-2400, or Regina K. Ryan (NY), 212-661-8030, both of The Financial Relations Board for Plaza Home Mortgage/
 (PHMC)


CO: Plaza Home Mortgage Corp.; Sandia Mortgage Corp. ST: California, New Mexico IN: FIN SU: TNM

JL -- NYON3 -- 6043 06/28/93 05:00 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 28, 1993
Words:466
Previous Article:KNOWLEDGE ADVENTURE ANNOUNCES EDUCATIONAL SOFTWARE DONATION PROGRAM
Next Article:LASSO(TM) ANTI-CARJACKING/ANTI-THEFT DEVICE GAINS APPROVAL OF NATIONAL ASSOCIATION OF CHIEFS OF POLICE TASK FORCE
Topics:


Related Articles
PLAZA HOME MORTGAGE TO ACQUIRE SANDIA MORTGAGE CORPORATION; PLAZA LOAN SERVICING PORTFOLIO WILL MORE THAN DOUBLE TO $6.5 BILLION
ACQUISITION FUNDING COMPLETED BY NETWORK FINANCIAL SERVICES
AMERICAN RESIDENTIAL MORTGAGE CORP. ACQUIRES SAVAGE MORTGAGE CORP.
PNC BANK COMPLETES ACQUISITION OF SEARS MORTGAGE BANKING GROUP
FLEET FINANCIAL GROUP TO PURCHASE PLAZA HOME MORTGAGE CORP.; WILL ADD $9 BILLION TO SERVICING PORTFOLIO
PLAZA HOME MORTGAGE CORP. ANNOUNCES MERGER WITH FLEET NATIONAL BANK
CHASE WILL OPERATE RECENT MORTGAGE ACQUISITIONS AND CHASE HOME MORTGAGE CORP. UNDER ONE NEW NAME
PLAZA HOME MORTGAGE CORP. EXECUTES AMENDED AND RESTATED MERGER AGREEMENT WITH FLEET NATIONAL BANK
NATIONSBANC MORTGAGE AND KEYCORP ANNOUNCE DEFINITIVE AGREEMENT

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters