Red Bank, New Jersey-based ZAIS FInancial Corp. announced this morning that it has completed its previously announced $61 million acquisition of Baton Rouge-based GMFS, a privately owned mortgage company that originates residential mortgage loans.
Founded in 1999, GMFS is licensed as a mortgage banker in 29 states; it had originated approximately $991 million in mortgage loans for the nine months ended Sept. 30, and $1.4 billion for the full year in 2013. GMFS is an approved originator of loans through Fannie Mae, Freddie Mac, the U.S. Department of Housing and Urban Development, U.S. Department of Agriculture and U.S. Department of Veteran Affairs, among other.
When the acquisition was first announced in August, the firms pegged the approximate value at $61 million. In announcing the completion of the deal this morning, ZAIS says the price was around $62.8 million at the closing.
The higher closing payment includes the fair market value of GMFS’s portfolio as of Friday, estimated at $34.8 million, and the actual value of GMFS’s net tangible assets.
ZAIS is a real estate investment trust that originates, invests in, finances and manages a diversified portfolio of residential mortgage assets, other real estate-related securities and financial assets. GMFS was recognized as Business Report‘s Company of the Year with 100 or more employees in the magazine’s 2014 Business Awards and Hall of Fame.
