American Home Mortgage to acquire principal retail branches.

Position:Business Alert - Brief Article
 
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NEW YORK-BASED AMERICAN HOME MORTgage Inc. has signed a definitive agreement to acquire the retail mortgage lending branches of Des Moines, Iowa-based Principal Residential Mortgage Inc., a company of the Principal Financial Group. American Home Mortgage will pay Principal Residential Mortgage a guaranteed profit margin on its current application pipeline, purchase the assets of the branch network and assume related liabilities. The acquisition will be funded from current cash reserves.

The retail branch network of Principal Residential Mortgage includes 78 mortgage branches located in 25 states. In 2002, the lending branches produced approximately 53.35 billion of residential mortgage loans, according to the company. The addition of this network will increase the total number of American Home retail branches to 209. American Home has agreed to work with Principal Residential Mortgage to close out substantially all of its current application pipeline on behalf of Principal Residential Mortgage.

Principal Residential...

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