Essex Completes LoanCare Spin-Off
The spin-off of LoanCare Servicing Center from Essex Bancorp has been completed along with the merger of Essex into Southern Financial Bancorp.
Under terms of the previously announced merger, existing shareholders of Essex own 75.1% of LoanCare and Southern Financial owns 24.9% of the firm.
LoanCare is a subservicer of mortgage loans for various investors. Gene Ross, chairman and CEO of Essex prior to the merger, has been named CEO of LoanCare.
The merger mania isn't over for Southern Financial Bancorp. Last November, the company entered into an agreement to merge into Provident Bankshares Corp., and both companies have filed relevant documents with the Securities and Exchange Commission.
LoanCare services about 43,000 loans with $5 billion in combined principal, the company said in its first quarter newsletter.
Gene Ross, president and CEO, said in the newsletter that he views LoanCare as an emerging company targeting middle market financial institutions in need of mortgage servicing outsourcing.
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