KeyCorp's Deal Adds to FHA Presence
KeyCorp is acquiring Dallas-based Malone Mortgage Co. in a move that is expected to expand the company's presence in the Federal Housing Administration financing and servicing areas.
The terms of the acquisition, which requires Ginnie Mae approval for the transfer of servicing rights from Malone to Key, were not disclosed.
Malone Mortgage originates and services multifamily FHA loans for new construction, acquisition and the refinancing of existing facilities.
To put a figure on the activity, Malone originates about $200 million in loan placements annually and has a loan servicing portfolio of about $1.2 billion, according to Key.
Todd Rodenberg, senior vice president and agency director, KeyBank REC, noted, "The acquisition of Malone Mortgage enables Key to provide even greater value to our clients through significant industry knowledge, while, at the same time, expands our FHA market coverage and product delivery across the U.S."
This acquisition will place KeyBank Real Estate Capital among the top 10 FHA servicers in the U.S, according to Key. As well, it will increase KeyBank's commercial mortgage servicing portfolio to about $40 billion.
Dallas will serve as the Western region hub of Key's FHA origination efforts and Duluth, Ga., where Key gained an FHA-lending presence through the acquisition of American Capital Resource last year, will serve as the company's Eastern hub.
Bernard P. Malone, president and founder, Malone Mortgage, said, "Combining our FHA expertise with KeyBank's national strength as a commercial real estate lender will provide our clients with the full-service lending institution they are looking for."
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