Correspondent Lender Hudson City Being Sold to M&T

M&T Bank Corp. Monday morning said it would buy New Jersey-based Hudson City Bancorp in a deal valued at $3.7 billion.

The acquisition will make M&T the 21^st largest home servicer of mortgages, according to figures compiled by National Mortgage News and the Quarterly Data Report. Among lenders, M&T will rank 20^th.

M&T expects to gain $28 billion in loans from the merger, before adjustments, the Buffalo, New York-based bank said.

A few weeks ago Hudson City—one of the largest buyers of correspondent loans in the New York/New Jersey area—said it plans to sell more of its production into the secondary market going forward.

At the time, the Paramus-based thrift said current conditions are making it difficult to be profitable as just a portfolio lender.