FSA, Nomura Buy Stakes in Fairbanks

Financial Security Assurance Inc. and Nomura Holding America Inc. have each purchased a 25% share of Fairbanks Capital Holding Corp., a Salt Lake City-based subprime mortgage servicer.Thomas D. Basmajian, Fairbanks Capital's chief executive officer, said the purchases (through a special-purpose business trust) will produce an important strategic alliance with FSA and Nomura. "The demand for specialized servicing skills is growing due to the expansion of the subprime market and the inevitable rise in consumer delinquencies that a larger market generates," Mr. Basmajian said. "Given our experience in purchasing distressed residential mortgage assets, we are well positioned to expand our business in asset acquisition and third-party servicing." Fairbanks Capital's Combat Servicing program provides third-party collection services on a fee basis for loans delinquent for 60 days or more. The company also offers fee-based servicing for performing assets. Cargill Financial Services Corp. retains a 25% share of Fairbanks Capital, and the remaining shares are held by management.