Industry News

Real estate investment trust to acquire mortgage co.

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American Home Mortgage Investment Corp. announced this week that it has signed an agreement to purchase Waterfield Financial Corp., a subsidiary of Union Federal Bank of Indianapolis, which includes 46 retail, wholesale and correspondent mortgage loan production branches in 16 states. American Home expects to purchase 100 percent of the capital stock of Waterfield Financial at a purchase price equal to the book value of Waterfield's net assets on the closing date of the acquisition, according to the announcement. Waterfield's primary assets are newly originated loans carried at the lower of cost or market which American Home expects to sell shortly after the acquisition is consummated. In addition, Waterfield has a nominal amount of fixtures and other property associated with its loan production businesses that will remain on American Home's books. The acquisition of Waterfield is expected to close in January 2006, and is subject to customary closing conditions. American Home expects...