Citizens Financial Group Inc. has completed its acquisition of Franklin American Mortgage Co.
The deal, which was first announced in May, triples the size of Citizens’ off-balance sheet mortgage servicing portfolio and more than doubles the size of its origination platform.
It also diversifies Citizens by adding correspondent and wholesale channels to its already strong retail capabilities.
Citizens will gain significant scale in mortgage servicing, as its existing off-balance sheet portfolio will grow from $20.2 billion to approximately $61.6 billion.
Including its existing on-balance sheet mortgage portfolio, the company will have a total portfolio of approximately $78.9 billion.
In addition, Citizens will benefit from the investment Franklin American Mortgage has made to its technology platform.
As of March, Franklin American Mortgage managed a $41.4 billion mortgage servicing portfolio and generated approximately $13.7 billion in annualized originations for the first quarter, nearly 100% of which was conforming.
As a result of the deal, Citizens will have one of the top 15 bank-owned, residential mortgage servicing and origination platforms.
“This transaction takes our mortgage business to the next level, expanding our reach and adding immediate scale in servicing as well as innovative correspondent and wholesale solutions,” says Brad Conner, vice chairman and head of consumer banking for Citizens, in a release. “Franklin American Mortgage’s strong history of excellence in customer service is a great cultural fit with our organization and we are excited to welcome a new group of colleagues to Citizens.”