Acquisition doubles Mid America's origination volume
Mid America Mortgage's deal to acquire the assets of two Oklahoma City-based lenders will double the Addison, Texas, company's loan volume.
But even before the deal is completed, retail lender American Southwest Mortgage Corp. and its affiliated third-party originator, American Southwest Mortgage Funding Corp., will start using Mid America Mortgage's origination and closing technology.
The transfer of operations and assets should be completed by Dec. 1. The financial terms were not disclosed.
American Southwest's loan pipeline will be moved to Mid America's proprietary Mortgage Machine loan origination system. Mid America is acquiring an interest in the existing pipeline.
In addition, American Southwest's retail unit gets immediate access to Mid America's Click n' Close digital lending system. The third-party channels at American Southwest will get access at a later date.
"Mid America's commitment to delivering a faster, more efficient mortgage process via technology has put us in a unique position to partner with firms like American Southwest to revitalize and streamline their operations, which ultimately provides their customers with better service," Jeff Bode, Mid America's owner and CEO, said in a press release.
"As we make this transition, we do so with an eye toward minimizing disruption to American Southwest's existing customers while also migrating its pipeline to our fully digitized origination and closing process."
Last year, American Southwest did $1.67 billion in total volume, with $690 million in retail, $588 million in the correspondent channel and $383 million in wholesale.
Through October, it produced $1.1 billion, of which $563 million was retail, $361 million from correspondent and $174 million from wholesale.
Mid America originated $1.49 billion last year and $1.17 billion through October of this year.