New York Mortgage Trust, Inc. announced today that its subsidiary, The New York Mortgage Company, LLC, has signed a definitive agreement, subject to customary closing conditions, to acquire 15 full service and 26 satellite retail mortgage banking offices located in the Northeast and Mid-Atlantic states from Guaranty Residential Lending, Inc., an indirect subsidiary of Temple-Inland, Inc. New York Mortgage will also acquire an existing pipeline of approximately $300 million in locked and unlocked mortgage applications in conjunction with the branch acquisition. As a result of this acquisition, New York Mortgage Trust's annual mortgage originations are expected to nearly double. The consummation of the transaction is expected to close mid-November, 2004.
"We believe this is a cost-effective and exceptional opportunity to substantially increase our retail mortgage origination capabilities," said Steven Schnall, Chairman and Co-CEO. "By adding 15 branch offices, 26 satellites, 324 employees and a very strong sales management team to our franchise, we will significantly expand our referral based retail origination network throughout the East Coast. This addition also enhances our ability to continue to build our presence nationally. Additionally, our focus to promptly replace our initial $1.2 billion portfolio of acquired mortgage-backed securities with self-originated loans will be greatly accelerated with this asset acquisition. Financially, we expect the acquisition to be immediately accretive and believe the transaction provides New York Mortgage Trust with enhanced opportunities for profitable internal growth."