Weyerhaeuser Mortgage acquires San Diego-based mortgage banking firm; expands national presence

Business Wire, April 25, 1996

WOODLAND HILLS, Calif.--(BUSINESS WIRE)--April 25, 1996-- Effective Thursday, Weyerhaeuser Mortgage Co. (WMC) has acquired all branches and Controlled Business Arrangements (CBAs) of Southwest Colonial Mortgage Co., a premier regional builder-oriented mortgage banking and financial services company based in San Diego.

Specific terms of the sale were not disclosed.

The acquisition is the first for WMC, part of the giant Weyerhaeuser Co. and one of the nation's largest single family home loan lenders. This is a major step in the company's aggressive plan to strategically increase its nationwide presence in the mortgage banking industry and coincides with its plan to solicit outsourcing of origination and servicing from banks, savings and loans and mortgage companies.

Southwest Colonial's retail branches acquired by WMC are located in San Diego, Valencia, Roseville, Laguna Niguel, and Walnut Creek, Calif.; Salt Lake City, and Las Vegas. WMC also acquired Southwest's wholesale branches in San Diego and Walnut Creek, in addition to the company's interests in six CBAs, which involve limited partnerships with selected residential home builders.

The branches will operate as a new WMC district office based in Southwest Colonial's former headquarters in Del Mar, Calif.

WMC feels that the acquisition will complement its strong historical emphasis on serving the residential builder community, and the CBA's give WMC the opportunity to expand its focus on strategic partnerships that better serve their mortgage customers.

"As a leading mortgage banking company specializing in builder services and CBAs, Southwest Colonial is a perfect fit for us in our continuing expansion of our retail and wholesale production," said Donald E. Lange, WMC's president and chief executive officer. "Southwest Colonial and its customers will significantly benefit from Weyerhaeuser's size, strength and range of loan programs and value added services."

Southwest Colonial was founded by Steven and Lauri Buehler in 1989. Steven Buehler has been appointed a senior vice president at WMC and will be responsible for managing the acquired operations. Additionally, 85 Southwest Colonial employees will join WMC. The new district will operate under the WMC name immediately and is expected to fund over $400 million.

Woodland Hills-based Weyerhaeuser Mortgage Co. has served the needs of builders, borrowers, realtors and mortgage brokers for almost 40 years. It offers more than 40 different residential loan programs including "A through D paper loans" in some 70 branch office locations nationwide.

CONTACT: Weyerhaeuser Mortgage Co.

Patti Fielding, 818/592-2537

or

Murphy/O'Brien

Barry Landon, 310/858-5750