Mutual of Omaha buys Keller Mortgage assets
Insurance company Mutual of Omaha has purchased Keller Mortgage’s assets in a deal that will allow the real-estate firm’s lending unit to continue to operate and serve customers of both companies, according to a press release. Financial terms of the transaction were undisclosed.
While Mutual of Omaha now owns all KM’s assets, the Keller Mortgage entity itself, which has been through a series of layoffs, will be co-owned by both companies. The lending units will continue to operate alongside each other.
“This transaction brings together two leaders in the mortgage industry, leveraging the strengths of each to provide outstanding products and services to homebuyers,” Mutual of Omaha Mortgage President Terry Connealy said in the release.
“Our KW customers will have access to an even more comprehensive slate of mortgage services from a trusted brand,” added Co-Founder and Executive Chairman of Keller Williams, Gary Keller.
The acquisition illustrates how duress in lending is affecting one of the number of real estate brokerages that own mortgage units. It also serves as one of the latest examples of how companies are working to find constructive ways to consolidate in the broader housing-finance industry.
American Portfolio Mortgage Corp.’s recent merger agreement with Town Square also calls for the companies involved to maintain existing branding. However, when the transaction closes in March, they will both become part of APMC at the entity level. When combined, APM and Town Square will be licensed in 36 states and use automation as a shared service.
“The merger creates a larger organization with significant synergies, unique advantages and an increased lending footprint,” Paul Kessel, president of APMC, said in a press release.
The agreement will also expand the loan products available to both companies, according to Lisa Thomas, CEO of Town Square.
