Knight Capital Buys HECM Originator Urban Financial

Posted by Orb Staff on July 06, 2010 No Comments
Categories : Residential Mortgage

City, N.J.-headquartered [link=http://www.knight.com/investorRelations/pressReleases.asp?compid=105070&releaseID=1443830]Knight Capital Group Inc.[/link] has completed its acquisition of Urban Financial Group Inc., an independent mortgage company and originator of home equity conversion mortgages (HECMs). Terms of the acquisition were not disclosed. Based in Tulsa, Okla., Urban Financial has 109 employees and branch offices in 10 states. The company currently offers or purchases residential mortgage loans in more than 30 states. ‘Considering the relatively low risks, growing demand among institutional investors and Knight's revenue model, the acquisition makes perfect sense,’ explains Knight Chairman and CEO Thomas M. Joyce, noting that securitization pools backed by HECMs, unlike conventional private mortgage-backed-securities (MBS), are 100% guaranteed by the federal government. In connection with the close of the acquisition, Urban Financial founder and CEO Bryan W. Hendershot has been appointed managing director and head of mortgage origination. He will report to Ronak Khichadia, managing director and global head of Knight's asset-backed securities and MBS unit. SOUCE: [link=http://www.knight.com/investorRelations/pressReleases.asp?compid=105070&releaseID=1443830]Knight Capital Group Inc.

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