Silverado to Buy San Diego Mortgage Bank

Silverado Financial Inc., Campbell, Calif., has announced an agreement to acquire San Francisco Funding Inc., a mortgage bank based in San Diego.The terms of the deal were not disclosed. Silverado projected that the acquisition would produce up to $400 million in loan volume and $6 million in gross revenue for the current year. As part of the deal, the company will purchase $15 million in warehouse lines and licenses to operate in eight Western states. "This acquisition represents a key component of our future business mix and will immediately make Silverado a full-fledged mortgage bank," said John Hartman, Silverado's president and chief executive officer. "Management will now pursue acquisitions of mortgage brokerage operations to provide greater distribution of our lending products." In April, Silverado (formerly Rhombic Corp.) announced the adoption of a new business model focused on the acquisition of established, profitable mortgage brokerage and banking operations in Northern California.