Citi to Purchase Assets of ACC Capital Holdings Wholesale Mortgage Origination & Mortgage Servicing Business
New York, NY – Citi announced that its Markets & Banking business has agreed to purchase the wholesale mortgage origination and mortgage servicing assets from ACC Capital Holdings (ACH). Citi secured the option to acquire these assets in February 2007 as part of its agreement to provide working capital to ACH and become ACH’s primary warehouse lender. The acquisition, which was finalized late this afternoon, will include the purchase of servicing rights on $45 billion of loans, as well as a minimal amount of existing loans and residuals. The financial terms of the transaction were not disclosed.
“Exercising our option to acquire the assets from ACH’s wholesale origination and servicing business allows Citi to secure valuable and scalable platforms in a market undergoing significant change,” said Jeffrey A. Perlowitz, Head of Global Securitized Markets in Citi’s Fixed Income, Currencies and Commodities unit, where the assets will reside. “Through this acquisition, we gain important operational and pricing efficiencies and the ability to extend the high lending standards of our existing residential mortgage business from point of origination through securitization and servicing.”
Citi will apply its industry-leading best practices in real estate lending to loan products originated from the newly acquired platform and expand its ongoing effort to help distressed borrowers.
The assets being acquired by Citi are part of the wholesale origination and servicing businesses of ACH with operational centers in Orange and Rancho Cucamonga, California, and Rolling Meadows and Schaumberg, Illinois, as well as a broker network extending across 48 States.
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