Citizens Financial Group has announced that its Citizens Bank unit has completed its purchase of certain net assets of Franklin American Mortgage, a national mortgage servicing and origination firm.
Following the transaction, Citizens triples the size of its off-balance-sheet mortgage portfolio to about $65.3 billion from $21.6 billion. Including the company’s on-balance-sheet portfolio, Citizen’s now has a total servicing portfolio of approximately $83.1 billion. The transaction includes mortgage servicing rights valued at approximately $600 million.
Eric Schuppenhauer, president of home mortgage at Citizens, will lead the combined mortgage business. Scott Tansil, CFO and COO of Franklin American Mortgage, will lead the correspondent and wholesale origination businesses headquartered in Franklin, Tenn.
“We are pleased to announce the completion of the Franklin American Mortgage acquisition,” said Brad Conner, Citizens vice chairman and head of consumer banking. “We believe this transaction creates tremendous value for Citizens and takes our mortgage business to the next level, expanding our reach and adding immediate scale in servicing as well as innovative correspondent and wholesale solutions. We welcome our new colleagues from Franklin American Mortgage and we look forward to providing exceptional customer service, along with enhanced products and services to help customers reach their potential.”
Citizens said it plans to maintain a significant presence in Tennessee and Texas associated with the expanded distribution platform of the combined business.
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