US Internet pure play bank, NetBank, is to acquire Florida-based Market Street Mortgage. Financial terms of the agreement have not been disclosed.
The acquisition is scheduled to be completed in the second quarter once regulatory approvals are received. The mortgage lender's existing management team will continue to oversee the day-to-day operation of the business.
D R Grimes, NetBank chief executive officer, says: "A mortgage company will provide us with a steady stream of varied loans to consider as investment options, and the loans will carry more favourable margins than ones purchased on the secondary market."