UNITED MORTGAGE CORPORATION ACQUIRED BY INVESTMENT GROUP LED BY MILLER & SCHROEDER, INC.
UNITED MORTGAGE CORPORATION ACQUIRED BY INVESTMENT GROUP LED BY MILLER & SCHROEDER, INC. MINNEAPOLIS, Jan. 2 /PRNewswire/ -- Miller & Schroeder, Inc., parent company of the Bloomington investment banking firm of Miller & Schroeder Financial, and Marshall Financial Group, a merchant banking firm in Minneapolis, announced today that the UMC Acquisition Corporation has acquired all capital stock of The United Mortgage Corporation (UMC), one of the two largest originators of home mortgage loans in the state of Minnesota. Miller & Schroeder, Inc. and Marshall Financial Group are the principal shareholders in UMC Holding Corporation, a newly formed Minnesota holding company which acquired the United Mortgage Corporation from the Resolution Trust Corporation (RTC) through UMC Acquisition Corporation. The acquisition from RTC includes the assets of United Mortgage Company, which employs 260 people in the Minneapolis, St. Cloud and Rochester areas. The acquisition also includes the assets of UMC's four subsidiaries (Stewart Title Company of Minnesota, Valley Mortgage, IDL Mortgage and UMC Financial), which employ an additional 100 people who originate loans, manage assets and issue title insurance policies. The acquisition will not affect the management, business practices or number of personnel at United Mortgage Corporation in any way. John W. Carlson, president of United Mortgage Corporation since 1981, will continue in that role. "Taking part in the acquisition of United Mortgage Corporation is a great investment for Miller & Schroeder," said Roger Wikner, president of Miller & Schroeder Financial. "It significantly expands the range of financial services we can offer, by providing more access to mortgage pools originated locally -- complementing our on-going development of corporate, government and asset-backed securities. "The acquisition is also good news for UMC's employees and the people of Minnesota, who will continue to have these companies originating and servicing home mortgage loans and providing title insurance for local customers," added Wikner. "Ordinarily pieces of a thrift would be liquidated and sold off piece by piece. But Miller & Schroeder was able to structure an agreement that facilitates a stock acquisition, instead of a liquidation. As a result, United Mortgage Corporation will continue to operate intact." United Mortgage Corporation services approximately 59,000 loans with a total principal balance of more than $3.8 billion, originating FHA, VA and conventional home mortgage loans in 17 states, including Minnesota, Illinois and North Dakota. "We're very pleased that the acquisition led by Miller & Schroeder has enabled our company to stay together," said Carlson. "For UMC, this acquisition means uninterrupted servicing of our loans and the continued existence of our company. "We're looking forward to continuing a close relationship with the investment group led by Miller & Schroeder," added Carlson. "We're particularly eager to work with them in accessing capital markets which can provide UMC with additional secondary market outlets for our mortgage originations." Miller & Schroeder Financial, one of the largest municipal finance firms outside of Wall Street, offers placement of corporate debt, mortgage banking and tax-advantaged leasing products to individuals, corporate and public finance clients. Founded in 1975, United Mortgage Corporation has been one of the top four lenders of government mortgage loans and one of the top three lenders of conventional loans in the Twin Cities metropolitan area for each of the last seven years. -0- 1/2/92 /CONTACT: Paul Maccabee of Mona, Meyer, McGrath & Gavin, 612-831-8515, for Miller & Schroeder/ CO: Miller & Schroeder, Inc., United Mortgage Corporation ST: Minnesota IN: FIN SU: TNM
AL -- MN010 -- 6337 01/02/92 18:20 EST
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|Date:||Jan 2, 1992|
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