Facebook Twitter LinkedIn Google Plus RSS

REIT purchases Louisiana mortgage company

By ,

Real estate investment trust ZAIS Financial Corp. announced Wednesday that it has reached an agreement to acquire mortgage company GMFS LLC.

The Red Bank-based company said in a news release that the purchase price would be approximately $61 million in cash, as well as two $1 million contingent, deferred payments and contingent, additional considerations.

GMFS, which originates residential mortgage loans, is headquartered in Louisiana. In 2013, it originated approximately $1.4 billion in loans.
The sale is expected to close in the fourth quarter. GMFS is expected to operate under its current name and with its current leadership team as a wholly owned subsidiary of ZAIS.

"We are delighted to announce this acquisition as a transformational next step in our evolution as a mortgage operating company,” Michael Szymanski, ZAIS’ CEO, said in the release. “GMFS already has a solid mortgage banking franchise with significant retail operations that have continued to outperform in the current loan origination environment. The acquisition provides us with the opportunity to advance two of our core strategic objectives: first, to directly source newly originated mortgage loans while controlling the origination process, and second, to diversify revenue streams to include origination activities and mortgage servicing rights investment income.”

Houlihan Lokey Capital, Inc., is acting as financial adviser to ZAIS, and Sandler O’Neill & Partners LP, is acting as adviser to GMFS.


Developer sees Jersey City apartment project as catalyst for Journal Square neighborhood

Following East Orange momentum, paid sick leave supporters turn focus to 5 more N.J. cities

Developer to begin $90M Jersey City hotel project; will create hundreds of jobs

Also Popular on NJBIZ

Write to the Editorial Department at editorial@njbiz.com

Leave a Comment


Please note: All comments will be reviewed and may take up to 24 hours to appear on the site.

Post Comment
View Comment Policy