News > Deals
Washington Mutual buys HomeSide
Savings & loan purchases portfolio for $1.3B cash, $735M debt; sees buy accretive to 2002 earnings.
August 28, 2002: 10:06 AM EDT

NEW YORK (CNN/Money) - Washington Mutual Inc. said it will acquire the mortgage portfolio of National Australia Bank's HomeSide Lending unit for about $1.3 billion in cash and $735 million in debt.

Seattle-based Washington Mutual (WM: down $0.40 to $37.12, Research, Estimates) added that it expects the purchase to be modestly accretive to earnings in 2002 and to close in the fourth quarter the year.

Click here to check other financial stocks

Under the agreement, Washington Mutual will buy HomeSide's parent company, SR Investment Inc., and its assets which include mortgage servicing rights on a mortgage portfolio worth about $131 billion.

National's foray into the U.S. mortgage lending business proved a disaster for the bank, which last year was forced to reduce the book value of Jacksonville, Fla.-based HomeSide by $2 billion.

Last December, National, also Australia's largest bank, sold HomeSide's mortgage business and all its operating assets, including its technology, infrastructure and employees, to Washington Mutual for $2 billion.

Under that deal, National retained HomeSide's mortgage portfolio.  Top of page

-- from staff and wire reports

  More on NEWS
JPMorgan dramatically slashes Tesla's stock price forecast
Greece is finally done with its epic bailout binge
Europe is preparing another crackdown on Big Tech
7 things to know before the bell
SoftBank and Toyota want driverless cars to change the world
Aston Martin falls 5% in its London IPO

graphic graphic