S.D. Bank Acquires Servicing Rights from Great Western
HF Financial Corp. here has agreed to buy the rights to service mortgages held by the South Dakota Housing Development Authority and Fannie Mae from Great Western Bank.
In addition, HF Financial, parent of Home Federal Bank, has agreed to sell four branches to Great Western. The sale of the four branches is expected to be completed by early November.
HF Financial said the purchase of the additional servicing business brings to more than $1.9 billion the value of its assets under management. Home Federal now will service more than 72% of the state housing authority's outstanding loans. The transfer was approved by the SDHDA in August.
"This has always been a rewarding source of business for us," said Curt Hage, HF Financial's chairman, CEO and president, in a news release. "Our mortgage servicing business has been a long-standing core competency, representing a reliable income stream for Home Federal. This acquisition only adds to that portfolio, allowing us to further leverage our infrastructure and expertise in this line of our business."
Great Western Bank is one of the largest SDHD loan originators in the state. The bank said it will continue to originate all types of mortgage loans, including SDHD loans, in the markets served by the bank.
The branches being sold to Great Western Bank are in the South Dakota towns of Redfield, Mobridge and Winner. Great Western is also acquiring a Home Federal Wal-Mart branch in Sioux Falls East.
Mr. Hage said the sale of the branches will allow his company to "focus better on our overall strategic plan for growth." He noted that Home Federal will continue to have 11 locations in Sioux Falls after the sale of the Wal-Mart location. (c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com