The buyout, expected to close in September, falls within monthsof KeyCorp's acquisition of National Realty Funding in Kansas City,MO - deals that promise to be the first of several to establish aSunbelt presence, a KeyCorp source told GlobeSt.com. Terms of theNewport asset purchase are not available, but are not subject toregulatory approval, according to KeyCorp.

The source says both entities' management teams presently arehashing out details of a new corporate structuring. The upcomingchanges will be announced in the next month. It is known thatNewport will remain in Dallas, but will operate under the name ofKey Commercial Mortgage Co., acting as a division of Key CommercialReal Estate.

Newport, with a servicing portfolio of more than $1 billion, isa leader in origination, underwriting, funding and servicing ofmulti-family and low-income real estate loans and securitizedmortgage programs. It is recognized for its expertise in FannieMae, Freddie Mac, Ginnie Mae and HUD.