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|Washington Mutual Completes Acquisition of Fleet Mortgage|
SEATTLE--(BUSINESS WIRE)--June 1, 2001--Washington Mutual, Inc. (NYSE:WM) today announced the company has completed its acquisition of Fleet Mortgage Corp., a unit of FleetBoston Financial Corp. (NYSE:FBF).
As a result of the transaction, Washington Mutual becomes the nation's leading mortgage lender, based on pro forma loan volume of $32.64 billion in the first quarter of 2001. In addition, Fleet Mortgage's mortgage servicing portfolio brings Washington Mutual's total servicing portfolio to $455.92 billion as of March 31, 2001, making the company the nation's No. 1 loan servicer.
"The addition of Fleet Mortgage adds further scale to our already strong mortgage lending and servicing capabilities," said Kerry Killinger, Washington Mutual's chairman, president and chief executive officer. "Fleet's impressive correspondent and wholesale teams extend Washington Mutual's position in these distribution channels, enabling us to serve an even greater number of customers nationwide."
Under the terms of the agreement, Washington Mutual paid a premium of $60 million over the agreed-upon fair-market value of Fleet Mortgage's equity. In addition to its processing center in the Northeast, Fleet will retain ownership of its retail origination and consumer direct channels, and will deliver the loans from those channels to Washington Mutual through a preferred correspondent agreement.
"We're delighted to welcome the Fleet Mortgage employees to the Washington Mutual family," said Craig S. Davis, president of the company's Home Loans and Insurance Services Group. "Together, our team will have a singular focus: to be the nation's leading mortgage lender and bring 'The Power of Yes' to even more consumers."
Davis noted that the acquisition fits well within the group's "buy and build" expansion strategy and leverages its innovative mortgage technologies, accelerating origination and servicing efficiencies.
With a history dating back to 1889, Washington Mutual, Inc. (NYSE:WM) is a national financial services company that provides a diversified line of products and services to consumers and small- to mid-sized businesses. At March 31, 2000 Washington Mutual and its subsidiaries had assets of $219.93 billion. Washington Mutual currently operates more than 2,300 consumer banking, mortgage lending, commercial banking, consumer finance and financial services offices throughout the nation. Washington Mutual's news releases are available at www.wamu.com.