Amresco To Buy VA Originator

Amresco Inc., Dallas, has agreed to purchase Mortgage Investors Corp. of St. Petersburg, Fla. for an upfront price of $70 million.MIC is the nation's 15th largest originator of FHA/VA loans, specializing in VA streamlined refinance loans (also known as interest rate reduction refinance loans). For the first six months of this year, MIC's production volume totaled $1.3 billion. To originate loans, MIC has a network of 30 retail branches. MIC sells all of its VA originations on a servicing-released basis. In addition to the $70 million payment (of which 82% will be in Amresco common stock), Amresco will pay the former owners of privately held MIC an earnout premium over a three-year period not to exceed $105 million. When the deal is completed, MIC will be Amresco's fifth line of business and will be called Residential Mortgage Banking. The existing residential business at Amresco will be renamed Home Equity Lending.