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DALLAS-BMC Mortgage Inc. yesterday acquired Lone Star Capital Funding Inc. in an ongoing push to become the nation’s first branded arranger of commercial loans in the $500,000 to $5 million sector.

Lone Star Capital’s owner, Scott Walton, has been made a senior loan officer with the takeover, bringing a client roster with several proprietary relationships to the fold. Lone Star, a two-person shop, does five to 10 deals per month with an average loan size of $2 million, according to Jonathan Morris, president of Dallas-based BMC Mortgage. The two firms are focused on the same sector so, he tells GlobeSt.com, “it’s a lot better if we joined forces.” Walton and his associate will vacate their longtime office at 3131 Custer Rd. in Plano for BMC’s headquarters at 4514 Cole Ave.

BMC is planning additional takeovers of small shops as it follows a course to become the nation’s largest provider in the small loan arena. Talks are underway with “competitors” in five cities as part of a two-year plan to buy out 25 small operations. With deals still sitting undone, Morris won’t say how much the acquisitions are costing, but did say there is a capital outlay on BMC’s part. All he will say about the pending acquisitions is that the closings will add three shops on the West Coast, four on the East Coast and another two in the Midwest.

Morris says investors in the $10 million and over range know who to call and he wants to establish that same kind of identity for the $5 million and under crowd. BMC Capital also has offices in St. Louis, Denver and Houston.

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