The old-line, privately-owned firms have a combined servicing portfolio of $2.9 billion and are shooting for $1 billion in total production volume this year.
Base on their individual performances in 2000, they should hit that mark, industry watchers predict. For example, Collateral Mortgage Ltd. posted 2000 production of $585.5 million. Charter American recorded volume of $319.4 million.
The merger was funded with a combination of an undisclosed amount cash and membership in the new limited liability company, Patricia O. Muse, director of marketing for Collateral Mortgage Capital, tells GlobeSt.com.
"About 18 months ago, Collateral Mortgage Ltd. began outlining its strategic growth plan for the new millennium," Muse says. "We wanted to take advantage of our strong investor relationships (Fannie Mae, one of only 26 DUS lenders nationwide); Freddie Mac (Program Plus lender); FHA (MAP lender), numerous life insurance companies and Wall Street firms."
Besides Alabama, the merged companies will initially operate out of offices in Atlanta, Orlando, Kansas City, Houston, Nashville and Columbus.
Collateral Mortgage Capital president/CEO David A. Roberts, previously president of Collateral Mortgage Ltd., says in a prepared statement one of the strategies behind the merger was "to build a strong national platform for our commercial real estate lending activities that will serve our borrowers and investors well."
Roberts tells GlobeSt.com the merger "is an intermediary step toward creating a national mortgage banking entity that possesses outstanding investor relatinship capabilities."
He says the strengths of the two companies "complement each other extremely well."
The old-line, privately-owned firms have a combined servicing portfolio of $2.9 billion. Collateral Mortgage Capital will provide financing for all categories of commercial and multifamily product.
Collateral Mortgage Capital would have ranked 31st among the Mortgage Bankers Association of America's largest commercial mortgage firms based on Dec. 31, 2000 statistics, according to the company. On a combined basis, the firms closed $905 million in new business during 2000.
Collateral Mortgage Ltd. was founded in 1933. The original company that spawned Charter American Mortgage Co. started in 1908. Charter American has been operating under its current name since 1976.
Before the merger, Collateral Mortgage employed 64 staffers; Charter American, 12. The merged firm plans to retain its combined staff of 76 and plans to add new offices and support staff nationwide.
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David Wilkening
David Wilkening began his long journalism career as a police reporter for Chicago-area newspapers. He became a writer-editor for major newspapers in Chicago, Washington, Detroit and Florida. He has been a business editor, political editor and travel editor for newspapers and magazines. He tried for a while to be a political operative but did better as an adjunct college professor teaching English and journalism. He is the author of several books, both ghost-written and under his own name. He is also a widely published freelance writer who currently lives in Orlando.
