Business
Mechanics Bank Agrees to Sell Fannie Mae Delegated Underwriting and Servicing Business Line to Fifth Third
WALNUT CREEK, Calif.--(BUSINESS WIRE)-- Mechanics Bancorp (“Mechanics”) (NASDAQ: MCHB) announced today that its subsidiary Mechanics Bank has entered into a
About this update from Fifth Third Bancorp
[{"type":"text","content":" WALNUT CREEK, Calif.--(BUSINESS WIRE)--\nMechanics Bancorp (“Mechanics”) (NASDAQ: MCHB) announced today that its subsidiary Mechanics Bank has entered into a definitive agreement to sell its Fannie Mae Delegated Underwriting and Servicing (“DUS”) business line (“DUS Business”) to Fifth Third Bancorp (“Fifth Third”) (NASDAQ: FITB) in an all-cash transaction. Completion of the transaction is subject to Fannie Mae’s approval of Fifth Third as an authorized DUS lender.\n\nThe DUS Business comprises a specialized division within Mechanics Bank focused on multifamily lending and servicing under the Fannie Mae DUS program, which allows approved lenders to independently underwrite, close, and service multifamily loans on behalf of Fannie Mae. This streamlines the lending process and provides direct access to an extensive set of Fannie Mae-backed loan products.\n\nPursuant to the definitive agreement, Fifth Third will acquire Mechanics Bank’s approximately $1.8 billion DUS servicing portfolio, including associated escrow amounts, and hire the Mechanics Bank employees operating the DUS Business.\n\nC.J. Johnson, President and CEO of Mechanics, said: “This transaction is compelling for all parties and creates a great opportunity for our talented DUS team. Fifth Third will provide an enhanced platform for growth and we are confident the DUS Business will thrive under their leadership.”\n\nThe transaction is expected to close in the first quarter of 2026, subject to customary closing conditions and Fannie Mae’s approval.\n\nAdvisors\n\nJ.P. Morgan Securities LLC is serving as financial advisor to Mechanics Bank, with Wachtell, Lipton, Rosen & Katz serving as legal advisor. Goldman Sachs is serving as financial advisor to Fifth Third, with Alston & Bird serving as legal advisor.\n\nAbout Mechanics Bancorp\n\nMechanics Bancorp (NASDAQ: MCHB) is headquartered in Walnut Creek, Calif., and is the financial holding company of Mechanics Bank, a full-service bank with $22.7 billion in assets and 166 branches across California, Oregon, Washington and Hawaii. Founded in 1905 to help families, businesses and communities prosper, Mechanics Bank offers a wide range of products and services in consumer and business banking, commercial lending, cash management services, private banking, and comprehensive wealth management and trust services. Learn more at...