Grand Bank NA has announced that it has signed an agreement with Rushmore Loan Management Services in which Rushmore will purchase the business of Grand Bank’s ICON Residential Lenders unit. Terms of the transaction were not disclosed. Irvine, Calif.-based ICON is a national wholesale mortgage originator and servicer which sources loans through a nationwide network of more than 1,400 mortgage brokers. The company is an approved Fannie Mae seller and servicer and Ginnie Mae issuer of mortgage-backed securities (MBS), and has a strong FHA and VA niche loan business.
“This sale will allow Grand Bank to focus on building our core community banking business, which will benefit our existing shareholders and customers,” said Mark A. Wolters, president and CEO of Grand Bank.
The closing of the transaction is subject to regulatory approvals as well as other customary closing conditions, and is expected to close in the fourth quarter of 2012 or the first quarter of 2013.
“We are excited to have this opportunity, as ICON’s business is a good complement to Rushmore’s existing mortgage business,” said Terry Smith, CEO of Rushmore. “We will be working closely with ICON’s management team to ensure a seamless transition for customers and employees.”
Grand Bank also announced that it has appointed Andrew Pollock as CEO of ICON effective immediately, a position that was previously unfilled. Pollock was previously the president and chief administrative officer of First California Mortgage Company, responsible for the successful turnaround and expansion of the organization. He was also the president and CEO of First Franklin, a Merrill Lynch subsidiary. Pollock has extensive experience in mortgage banking, wholesale mortgage originations, mergers and acquisitions, and leading quick growth initiatives.
“There is significant untapped potential at ICON, and I look forward to working closely with the existing management team to add value, expand the business, and close the transaction with the Rushmore management team,” said Pollock.
