Matrix Sells Assets of Servicing Advisory Unit

Matrix Bancorp here has sold the assets of its servicing advisory group to Security National Holding Co., Eureka, Calif., and former employees of the unit for $4.1 million.

The advisory group, Matrix Bancorp Trading, evaluates and sells residential servicing portfolios. It also manages an active whole-loan trading desk.

Employees of MBT will be housed under a limited liability company called SN Capital Markets LLC. MBT employed 31 full-timers, all of whom will shift over to SNCM. (As a technical matter Matrix will still own the legal shell that is MBT.)

The new company will continue to do business with Matrix, said Jonas Roth, national sales director for SNCM. "We'll have an ongoing business relationship with them," said Mr. Roth.

In 2005, MBT conducted 425 evaluations on servicing portfolios for 120 different clients. It brokered $30 billion in servicing deals. Year-to-date, it has already brokered $15 billion, said Mr. Roth. "We expect the servicing brokerage market to do very well this year," he said.

Meanwhile, now that the deal is closed, SNCM has aggressive plans to launch an alt-A conduit with partner Amherst Funding Group, Austin, Texas. AMF is a registered broker/dealer. Security National is a depository.

Amherst will be the end investor in the alt-A paper, said Mr. Roth.

Amherst will aggregate the mortgages and sell them through whole loan sales or securitizations. "They'll be looking for the best execution," he said.

The new company also plans to launch a commercial and multifamily acquisition program.

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