American Home Mortgage to Acquire Mortgage Origination Branches and Credit Union Affinity Business From Irwin Mortgage Corporati
March 14 2005 - 8:30AM
PR Newswire (US)
American Home Mortgage to Acquire Mortgage Origination Branches and
Credit Union Affinity Business From Irwin Mortgage Corporation
MELVILLE, N.Y., March 14 /PRNewswire-FirstCall/ -- American Home
Mortgage Corp., a subsidiary of American Home Mortgage Investment
Corp. (NYSE:AHM), announced today that it has signed a definitive
agreement with Irwin Mortgage Corporation, a wholly owned
subsidiary of Irwin Financial Corporation (NYSE:IFC), to acquire
community mortgage loan production branches in Arizona, California,
Colorado, Hawaii and Washington. In addition, American Home will
acquire Irwin Mortgage's credit union affinity business, which
markets mortgage loans through mortgage salespersons located onsite
at approximately 50 credit unions. American Home expects total
additional annual originations of between $500 million and $1
billion as a result of the acquisition. The acquisition is expected
to have a limited accretive impact on American Home's earnings
beginning concurrent with the closing of the acquisition, which is
expected to occur in April. The closing is subject to customary
conditions, including American Home obtaining state licenses to
operate the acquired branch offices. As part of the transaction,
American Home will extend employment to Irwin Mortgage employees at
the acquired locations. The companies have agreed to coordinate
closely to ensure a smooth integration process so that customer
service will not be disrupted. John Johnston, President of American
Home's Western Division, commented, "The acquisition is consistent
with our company's ongoing strategy of building origination
capabilities both through acquisitions and organic growth. I am
pleased at the opportunity to acquire a team of high quality
mortgage salespersons, managers and operations staff, and impressed
by the team's proven ability to profitably serve customers."
Michael Strauss, American Home's Chairman and Chief Executive
Officer, added, "The additional loan production gained through our
purchase from Irwin will increase our company's ability to add
assets to our portfolio at less than their capital markets cost
through self-origination, and is expected to contribute to our
ongoing effort to enhance the return from our portfolio." American
Home Mortgage Investment Corp. is a mortgage real estate investment
trust (REIT) focused on earning net interest income from self-
originated mortgage-backed securities, and through its taxable
subsidiaries, from originating and servicing mortgage loans for
institutional investors. Mortgages are originated through a network
of loan production offices as well as through mortgage brokers and
are serviced at the Company's Columbia, Maryland, servicing center.
For additional information, please visit American Home's website at
http://www.americanhm.com/. This news release contains "forward
looking statements" that are based upon expectations, estimates,
forecasts, projections and assumptions. Any statement in this news
release that is not a statement of historical fact, including, but
not limited to, earnings guidance and forecasts, projections of
financial results and loan origination volume, expected future
financial position or business strategy, and any other statements
of plans, expectations, objectives, estimates and beliefs, is a
forward-looking statement. Words such as "look forward," "will,"
"anticipate," "may," "expect," "plan," "believe," "intend," and
similar words, or the negatives of those words, are intended to
identify forward-looking statements. Such forward-looking
statements involve inherent known and unknown risks, uncertainties
and other factors that are difficult to predict, and are not
guarantees of future performance. As a result, actual future events
may differ materially from any future results, performance or
achievements expressed in or implied by this news release. Specific
factors that might cause such a difference include, but are not
limited to, American Home's limited operating history with respect
to its portfolio strategy; the potential fluctuations in American
Home's operating results; American Home's potential need for
additional capital; the direction of interest rates and their
subsequent effect on the business of American Home and its
subsidiaries; risks associated with the use of leverage; changes in
federal and state tax laws affecting REITs; federal and state
regulation of mortgage banking; those risks, uncertainties and
other factors discussed in filings made by American Home with the
Securities and Exchange Commission; and possible difficulties
completing the transaction contemplated in this news release.
American Home does not assume any responsibility, and expressly
disclaims any responsibility, to issue updates to any
forward-looking statements discussed in this press release, whether
as a result of new information, future events or otherwise.
DATASOURCE: American Home Mortgage Corp. CONTACT: Mary M. Feder,
Vice President, Investor Relations, +1-631-622-6469, Web site:
http://www.americanhm.com/
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