Bank of America Corporation (ticker: BAC, exchange: New York Stock Exchange (.N))
News Release -
Bank of America to Acquire Reverse Mortgage Business of Seattle Mortgage Company
Acquisition enhances Bank of America's leadership position in providing
financial solutions for seniors
CHARLOTTE, N.C., April 26 /PRNewswire/ -- Bank of America today announced
that it has signed a definitive agreement to acquire the reverse mortgage
business of Seattle Mortgage Company, an indirect subsidiary of Seattle
Financial Group, Inc., one of the leaders in providing financial solutions for
seniors. Bank of America is one of the country's leading mortgage lenders, and
has recently been piloting innovative reverse mortgage products with customers
in Arizona since November. Seattle Mortgage markets its reverse mortgages
under its division name, Reverse Mortgage of America.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050720/CLW086LOGO-b )
"Seattle Mortgage has been a pioneer in developing mortgage products and
services that address the senior population's growing need for greater
financial liquidity," said Floyd Robinson, president of Bank of America
Consumer Real Estate. "This is in line with Bank of America's desire to grow
its consumer real estate business by utilizing our significant advantages in
size and scale."
Financial details of the transaction were not announced. The deal is
expected to close in the second quarter of 2007, pending regulatory approval.
David Rupp, Bank of America Home Equity executive, will oversee the integrated
"We will leverage Seattle Mortgage's industry expertise with Bank of
America's leading distribution channels to achieve market leadership in this
growing area of the financial services marketplace," Rupp said.
Seattle Mortgage entered the reverse mortgage industry in 1995. It has a
loan portfolio of 40,000 reverse mortgages, totaling over $4 billion in
outstanding balances. Approximately 400 Seattle Mortgage associates will join
Bank of America, including a retail sales force of more than 200 sales
associates in 25 states and the District of Columbia. John Nixon, executive
vice president and COO of Reverse Mortgage of America, a division of Seattle
Mortgage Company, and Charlie Jones, vice president of Loan Servicing, will
join Bank of America and report to David Rupp.
Bank of America achieved market leadership as the nation's No. 1 home
equity lender in 2006 and remains the market leader today with more than $92
billion in loans and lines of credit.
UBS Investment Bank acted as exclusive financial advisor to Seattle
Mortgage Company in this transaction.
Bank of America is one of the world's largest financial institutions,
serving individual consumers, small and middle market businesses and large
corporations with a full range of banking, investing, asset management and
other financial and risk-management products and services. The company
provides unmatched convenience in the United States, serving more than 56
million consumer and small business relationships with more than 5,700 retail
banking offices, more than 17,000 ATMs and award-winning online banking with
nearly 22 million active users. Bank of America is the No. 1 overall Small
Business Administration (SBA) lender in the United States and the No. 1 SBA
lender to minority-owned small businesses. The company serves clients in 175
countries and has relationships with 98 percent of the U.S. Fortune 500
companies and 80 percent of the Fortune Global 500. Bank of America
Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
SOURCE Bank of America
CONTACT: Media, Terry Francisco of Bank of America, +1-704-386-4343,