PSM Holdings Inc., Roswell, N.M., is purchasing United Community Mortgage Corp., a mortgage banker with offices in New York and New Jersey, for an undisclosed sum.
Under a letter of intent signed by the parties, UCMC will be merged into PSM's subsidiary PrimeSource Mortgage Inc., and PMSI will take over UCMC's Federal Housing Administration 'full eagle' designation.
According to a Securities and Exchange Commission filing, the two companies are negotiating the amount of PSM common stock to be issued to UCMC's sole shareholder, as well as an employment agreement for that sole shareholder.
Jeff Smith, president of PSM, said in a statement, "We are thrilled about this acquisition as it will become the cornerstone of our new mortgage banking network. Having the full eagle designation will lead to exponential growth in the very near future."
PSM is licensed in 15 states and has over 30 branch offices. Its common stock is traded on the over-the-counter bulletin board.
