Donald Trump's campaign for president on Wednesday proposed raising the interest rates on some home loans to as much as 15 percent.The Trump Mortgage Bank, a subsidiary of his campaign, is the first big mortgage lender to go ahead with such a plan.The move comes after Trump, who has proposed closing the so-called revolving door between Wall Street and the White House, said in a recent interview th...
CA Mortgage and State Bank are to merge, with the merged entity acquiring mortgage lenders that have been at the forefront of California’s mortgage market.
The deal, to be announced Thursday, would allow the California Bankers Association to have a stake in the new entity, the agency’s chief executive officer said Thursday.
The bank also would be able to buy and sell mortgage securities.
California’s banking sector has been struggling as the state grapples with a wave of foreclosures, including a spate in the Los Angeles area.
State Bank said it plans to acquire a $1.9 billion stake in California Mortgage Finance Corp., the largest mortgage lender in the state, and sell $900 million of its mortgage bonds in 2018.
State bank has been a key player in the California mortgage market for decades.
In 2018, it received $5.3 billion in loans and loans guarantees.
In 2015, the bank secured $1 billion in mortgages for low-income borrowers.
Statebank’s stake in CA Mortgage Finance is expected to be worth $800 million.
CA Mortgage has been in the industry for more than two decades and operates a portfolio of mortgage-backed securities.
CA Financial also has a stake, as well as a smaller stake in other lenders, in the mortgage-asset-backed mortgage-recovery funds.