MidFirst Bank Adds $6.5 Billion Government Loan Portfolio

MidFirst Bank purchases $6.5 billion mortgage servicing portfolio, comprised more than 65,000 government-backed mortgage loans.
The purchase places MidFirst, which is the third largest privately owned bank in the U.S., among the top five servicers of FHA and VA government-backed loans in the U.S.
As a result, MidFirst will be adding 70 new positions in a variety of different loan servicing functions, bringing the servicing group’s total to nearly 500 employees.
“MidFirst Bank’s position during these uncertain financial times has enabled it to pursue multiple opportunities. We remain dedicated to our core competencies in the government-backed mortgage banking arena as evidenced by this transaction,” said Bob Dilg, president and chief executive officer of MidFirst Bank.
MidFirst’s government servicing portfolio now stands at 372,000 loans totaling $29.3 billion. Over the past 12 months, MidFirst has purchased government-backed FHA and VA servicing portfolios totaling nearly $16 billion. Unlike riskier assets such as sub-prime and other private-issue mortgage loans, FHA and VA loans are directly backed by agencies of the United States government and therefore carry minimal credit risk.
MidFirst Bank’s mortgage servicing portfolio is comprised primarily of FHA and VA mortgage loans with 98 percent of the portfolio being government-backed.

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