Banc of California NA completed the sale of assets of its residential mortgage banking division, Banc Home Loans, to Caliber Home Loans Inc.
Caliber Home Loans expects to grow its salesforce to over 1,800 people spread across more than 340 retail locations in the U.S.
It was earlier announced that Caliber Home Loans will buy the assets for a $25 million cash premium payment, plus an additional $2.7 million in the net book value of certain assets acquired by Caliber.
In addition, Banc of California NA will receive a quarterly earnout based on the future performance of the target business over the 38 months after the close of the deal. Caliber can opt to buy out the future earnout payable to the bank for $35 million in cash, less the aggregate amount of all earlier earnout payments.
Banc Home Loans generated more than $5.1 billion in closed loan volume in 2016.