Servicing

Financial Security Assurance Inc. and Nomura Holding America Inc. have each purchased a 25% share of Fairbanks Capital Holding Corp., a Salt Lake City-based subprime mortgage servicer.Thomas D. Basmajian, Fairbanks Capital's chief executive officer, said the purchases (through a special-purpose business trust) will produce an important strategic alliance with FSA and Nomura. "The demand for specialized servicing skills is growing due to the expansion of the subprime market and the inevitable rise in consumer delinquencies that a larger market generates," Mr. Basmajian said. "Given our experience in purchasing distressed residential mortgage assets, we are well positioned to expand our business in asset acquisition and third-party servicing." Fairbanks Capital's Combat Servicing program provides third-party collection services on a fee basis for loans delinquent for 60 days or more. The company also offers fee-based servicing for performing assets. Cargill Financial Services Corp. retains a 25% share of Fairbanks Capital, and the remaining shares are held by management.

Societe Generale has acquired Meenan, McDevitt & Co. Inc., a firm specializing in the sale of performing and nonperforming commercial mortgages, syndicated real estate, residential mortgages, and other types of loans.The terms of the acquisition were not disclosed. Twelve top officials from Meenan, McDevitt will join the firm as managing directors, with Kevin Meenan heading loan sales and Tom McDevitt heading portfolio sales for SG Americas. "The hiring of this highly respected team facilitates our transition into a leading distribution channel for our clients," said Jerry Johnson, SG's managing director and head of corporate banking. Societe Generale Securities Corp. is a subsidiary of Societe Generale USA, the third largest foreign bank in the U.S.