Franklin to Buy Mortgage Wholesaler

Franklin Financial Group, Southfield, Mich., has announced that it will expand its presence coast-to-coast through the acquisition of Approved Federal Savings Bank, a wholesale mortgage provider based in Virginia Beach, Va.The terms of the deal were not disclosed. Upon the closing of the deal, Franklin will acquire AFSB's wholesale residential mortgage lending operations in Virginia Beach; Orlando, Fla.; and Huntington Beach, Calif. Ownership rights will be transferred to Franklin's chief executive officer, Bob Pilcowitz, and its chief operating officer, Edan King, but Franklin and AFSB will operate as separate entities. Both transactions (which are subject to regulatory and shareholder approval) are expected to close by the end of 2003. Franklin said it plans to restructure AFSB initially as a community bank that will continue to operate through its current headquarters. Franklin also said it plans to expand AFSB's loan product mix with "an array of consumer-oriented financial service products," and will diversify from a residential mortgage lender to a nationwide financial services operation, serving both individual and commercial needs.