AIG Buys B&C Portfolio at a 'Premium'

American General Finance has agreed to pay $1.49 billion to Popular Inc. -- a 3% premium -- for most of its subprime loan portfolio. A spokesman for the San Juan, Puerto Rico-based Popular told MortgageWire that most of the loans are subprime in nature and carry fixed rates. "It's a good deal for us and it's a good deal for them," he said. "We get cash and are exiting the market." He added that the loans are "well documented." The mortgages were funded by the bank's Equity One consumer finance division, a company Popular has owned since 1991. The New York-based AGF will also take control of 24 Equity One branches, all of which are located in the continental United States. AGF is a subsidiary of American International Group, an insurance conglomerate.