The financing package is expected to provide Freedom Mortgage, a regional provider in residential mortgage services, with additional liquidity, according to the company's CEO and founder, Stanley Middleman. The influx of cash through fleet is designed to allow the 20-year-old company to fund its 2003 loan production, which is expected to be in the $2 billion range, as well as to grow its servicing portfolio to more than $2.5 billion by the end of this year.
"Our recent growth in loan production volume, which has resulted from the record low mortgage rates, has in turn increased the need for additional liquidity," according to Middleman. "Fleet's provision of credit and cash management services will ensure that we can continue to grow our business in this market."
And with the transaction, Fleet has effectively established itself as Freedom Mortgage's primary cash management bank, according to Middleman.
"We are pleased to strengthen our relationship with Freedom Mortgage, and to help the company meet its growth objectives," says Stewart Neff, group executive of Fleet's Financial Institutions Group. "We're confident in its management team and look forward to working with them in the future."
For its part, the Boston-based FleetBoston Financial is now the seventh largest financial holding company in the US with assets of $197 billion.
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