The New York Mortgage Trust (NYMT) announced Wednesday, February 7th, that it has entered into an agreement to sell the retail mortgage banking platform of its subsidiary, the New York Mortgage Company (NYMC), to IndyMac Bank. The deal is expected to close by the end of March, earning NYMT an estimated $12.1 million. According to Steven B. Schnall, NYMT’s Chairman, the reason behind the sale is mainly the “significant contraction in the market” and the challenges it poses for the business.
IndiMac will hire the majority of NYMC’s employees, acquiring its 32 offices in 11 states, including all loan officers and all mortgage applications in process at the time of closing.
Steven B. Schnall, current Chairman, President and co-CEO of NYMT, revealed that the acquisition is a result of preliminary discussions over the past several months. It was also announced that, upon closing, Mr. Steven Schnall will resign his current position to be replaced by Mr. Steve Mumma, currently a member of NYMT’s executive team. Mr. Schnall will be appointed non-executive Chairman of NYMC as a part of IndyMac.
New York Mortgage Trust, a Real Estate Investment Trust (REIT), originates a broad spectrum of residential loan products, focusing mainly on prime loans. It is planning to sell its wholesale mortgage banking business as well, and is considering selling the entire company.
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