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Heartland Bank buys Creve Coeur Mortgage(St. Louis Post-Dispatch (KRT) Via Thomson Dialog NewsEdge) May 2--Heartland Bank of Clayton will expand its mortgage lending operation to about 30 states by assuming the assets and liabilities of Creve Coeur Mortgage Associates Inc. It plans to rename the company Heartland Wholesale Funding Inc., according to documents filed with the federal Office of Thrift Supervision. Creve Coeur Mortgage, at 1150 Hanley Industrial Court in Brentwood, last year originated $700 million in mortgage loans through its wholesale operations, said Donald W. Williams, chief executive of Heartland. By contrast, Heartland made about $150 million in mortgages. Creve Coeur originated $1.3 billion in loans in 2005. In an application seeking OTS approval for the purchase, Heartland said the deal would provide it with new sources of noninterest income from products and services that complement the bank's offerings. "Our plan is to grow the business," Williams said. Creve Coeur's wholesale business provides funding for mortgages originated by independent mortgage brokers and mortgage companies. Heartland will continue that practice, setting its own standards for the loans, Williams said. Creve Coeur Mortgage is a 16-year-old Missouri corporation led by Howard W. Wegman, president, and Thomas J. Barr, vice president and secretary, according to documents filed with the Missouri Secretary of State's office. Wegman, reached by phone, said he and about 100 other employees will stay with the company, though Barr will not. Heartland is taking over Creve Coeur Mortgage's assets and liabilities, according to the application with OTS. Wegman said in an interview that affiliating with Heartland would give the company more access to capital. Heartland also asked that the mortgage company be allowed to operate under federal supervision rather than state law. The application is pending, with a decision expected by May 26, an OTS spokeswoman said. The application indicates that Heartland's board approved the purchase and agreed to make the application on Feb. 12. To see more of the St. Louis Post-Dispatch, or to subscribe to the newspaper, go to http://www.stltoday.com. Copyright (c) 2007, St. Louis Post-Dispatch Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |