Bank of America Buying Seattle Mortgage

By Justin Matlick
Sacramento Business Journal

Bank of America Corp. is buying Seattle Mortgage Co.'s reverse mortgage operation.

The nation's third-largest reverse mortgage lender, Seattle's Reverse Mortgage of America division has roughly 400 employees and a loan portfolio totaling $4 billion.

Charlotte, N.C.-based BofA (NYSE: BAC) said it plans to absorb these workers, and to leave Seattle executives John Nixon and Charlie Jones in place to oversee the division. Financial details were not disclosed.

For BofA, the deal means a chance to make inroads into one of the mortgage industry's fastest-growing segments. Reverse mortgages are designed to help senior citizens borrow against their home equity. With millions of Americans expected to retire soon, banks and mortgage companies have been racing to establish a foothold in the area.

The deal is expected to close in the second quarter of 2007.

From: Sacramento Business Journal (www.bizjournals.com)