Under the terms of the deal, MortgageIT will become a part of Deutsche Bank’s Residential Mortgage Backed Securities group, to be led by Doug Naidus, currently CEO of MortgageIT, who will be appointed managing director and head of mortgage origination within the group.
The purchase follows a series of investments the German finance institution has made into the US mortgage lending market, with previous acquisitions including Chapel Funding, a mortgage originator, and a joint venture with the Hispanic National Mortgage Association.
The acquisition of MortgageIT will enable Deutsche Bank to lend money directly to home buyers, and, in turn, the bank can buy fewer mortgages from lenders for securitization into mortgage-backed bonds.
Phil Weingord, head of global markets in the Americas, said: Expanding our origination platform provides us with access to a steady source of product for distribution into the mortgage capital markets.
The acquisition is expected to be accretive to earnings in 2007, adding significant scale and synergies to Deutsche Bank’s US residential mortgage business.
