Printer Friendly

PLAZA HOME MORTGAGE TO ACQUIRE SANDIA MORTGAGE CORPORATION; PLAZA LOAN SERVICING PORTFOLIO WILL MORE THAN DOUBLE TO $6.5 BILLION

 SANTA ANA, Calif., May 24 /PRNewswire/ -- Plaza Home Mortgage Corporation (NASDAQ: PHMC) and Sandia Mortgage Corporation today jointly announced that Plaza has agreed to acquire Sandia, a privately-owned mortgage loan servicing company based in Albuquerque, New Mexico. The acquisition is scheduled to close in late June, subject only to Plaza's completion of financing arrangements.
 The terms of the transaction provide for Plaza to purchase all of the outstanding Sandia shares upon payment to the Sandia shareholders of $6.5 million in cash, the issuance of up to 600,000 shares of common stock, and the assumption of approximately $40 million of outstanding Sandia liabilities. Plaza will acquire 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 adjustment based upon the performance of the Sandia loan servicing portfolio.
 Jack French, chairman and chief executive officer, said, "The Sandia acquisition is a strategic move reflecting our goal of solid, long term company growth through aggressive geographic expansion, diversification and acquisition."
 "The more than doubling of our loan servicing portfolio will substantially boost the 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 25 loan origination offices in eight states, and is ranked the ninth largest mortgage loan originator in California, the 22nd largest nationwide.
 -0- 5/24/93
 /CONTACT: Brad Morrice, executive V.P./general counsel of Plaza Home Mortgage, 714-564-8036, or Charles Underbrink, vice president of Sandia, 612-591-1220, or Regina K. Ryan of FRB New York, 212-661-8030, or John H. Shaw of FRB Los Angeles, 818-783-2400/
 (PHMC)


CO: Plaza Home Mortgage Corporation ST: California IN: FIN SU: TNM

TM -- NY008 -- 1469 05/24/93 06:00 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:May 24, 1993
Words:371
Previous Article:DELTA PETROLEUM CORPORATION REPORTS RESULTS
Next Article:NETMANAGE INTRODUCES FIRST TCP/IP FOR MICROSOFT WINDOWS NT-J (KANJI); CHAMELEON32 DISPLAYED AT MICROSOFT BOOTH AT COMDEX
Topics:


Related Articles
MARGARETTEN FINANCIAL IN NEGOTIATIONS TO PURCHASE A MAJOR MORTGAGE SERVICING PORTFOLIO FROM NATIONSBANK
PLAZA HOME MORTGAGE ANNOUNCES COMPLETION OF ACQUISITION OF SANDIA MORTGAGE CORP.
ASSOCIATES NATIONAL MORTGAGE CORPORATION ACQUIRES PORTION OF U.S. BANCORP MORTGAGE COMPANY SERVICING PORTFOLIO
MELLON COMPLETES ACQUISITION OF MORTGAGE ORIGINATION AND SERVICING BUSINESSES OF U.S. BANCORP MORTGAGE COMPANY
NATIONSBANC MORTGAGE CORP. REACHES AGREEMENT TO PURCHASE MORTGAGE SERVICING RIGHTS AND SERVICING OPERATION OF EXPRESS AMERICA HOLDINGS
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
PLAZA HOME MORTGAGE CORP. EXECUTES AMENDED AND RESTATED MERGER AGREEMENT WITH FLEET NATIONAL BANK
NORWEST MORTGAGE COMPLETES PURCHASE OF $15 BILLION SERVICING PORTFOLIO FROM BARCLAYS BANK PLC
FIRST UNION ACQUIRES MASTER SERVICING PORTFOLIO FROM BEAR STEARNS

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