NEW YORK (CNNfn) - Chase Manhattan Corp., the nation's second-largest bank, agreed to acquire Mellon Bank Corp.'s residential mortgage business Wednesday, giving Chase the nation's largest mortgage servicing portfolio.
Terms of the deal weren't disclosed, but the addition of Mellon's $55 billion servicing portfolio will expand the customer base of Chase's mortgage arm by 25 percent to 3.1 million while giving it a combined servicing portfolio of $292 billion.
Currently, Chase's mortgage operations rank as the country's third largest, although for the first half of 1999, the New York-based institution ranked as the nation's largest mortgage originator for the first time.
For Mellon, the deal offers the Pittsburgh-based bank yet another opportunity to refocus on its core businesses such as asset management and private banking.
Mellon previously reached deals to sell its network services unit to U.S. Bancorp (USB) and its $14 billion commercial mortgage servicing portfolio to GMAC, General Motors Corp.'s (GM) financing arm.
In mid-day trading, Chase (CMB) advanced 1 /4 to 79-1/16 while Mellon (MEL) inched forward 1/16 to 34-1/8.
--from staff and wire reports