DEC 20, 2013 2:35pm ET

PMAC to Buy Residential Finance: Sources

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PMAC Lending Services, Chico Hills, Calif., is acquiring the assets of Residential Finance Corp., Columbus, Ohio, National Mortgage News has learned from various industry sources.

RFC does not have a comment at this time, a spokeswoman said. PMAC’s management team has returned a request for confirmation.

Rumors about the viability of RFC have picked up in recent months. Some observers feel that the fast-growth track the company had undertaken in the past few years caught up with it as interest rates started to rise. The drop in originations reportedly left RFC’s management scrambling for cash.

This includes selling mortgage servicing rights to raise operating funds.

In September, the company confirmed it had closed its Charlotte, N.C., operations center after a 25% to 30% decline in origination volume starting in May.

RFC also closed 15 branches during the summer. But in August, the company started a core services division to work with real estate brokers and homebuilders.

PMAC Lending Services, Residential Finance Corp., Michael Isaacs, mortgage origination, mortgage servicing

Comments (1)
Are they taking on any debt? This company has close most of its branches and has left the hard working people out in the cold by not paying them for their work for the month prior to closing. So maybe the funds from this sale should be used to pay those unfortunate employees that have had their earning stolen away.
Posted by Linda L | Monday, January 13 2014 at 9:34AM ET
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