1 May 2014
Capita to acquire Crown Mortgage Management
Capita’s asset services business is to acquire residential mortgage servicing firm, Crown Mortgage Management Limited (‘Crown’) for an undisclosed sum. Domestic mortgage administration is a relatively new market for Capita, which currently manages £129 billion of commercial loans on behalf of banks.
Crown is one of the longest established residential and small balance commercial mortgage servicers in the UK and provides residential and commercial mortgage administration services to banks and financial institutions. The company has significant experience in managing clients’ strategies across both performing and non-performing mortgage assets. Services include commercial servicing, residential primary servicing, new mortgage origination, equity release administration, credit management and due diligence.
Andy Parker, Capita plc chief executive, said: “Capita’s ambition is to be the leading end to end service provider to banks and investors across all asset classes and on a pan European basis. The acquisition of Crown will broaden and strengthen the range of services we can offer financial services clients and, vitally, provide us with an immediate and well established position in the residential loan servicing market.
“We think that the combined strengths of Capita and Crown will provide a compelling proposition both for the traditional and challenger banks, particularly as we invest in infrastructure to support both existing and new mortgage administration.”
Capita’s asset services business has offices in Ireland, the UK and Germany, is already Europe's largest and fastest growing independent 3rd party servicer. It provides loan administration, asset management, debt restructuring and loan workout services to the banking and securitisation markets.
Crown employs 130 staff and is based in Ipswich, Suffolk.
The acquisition is subject to FCA approval.