Residential Services Corporation of America Acquires Lomas Information Systems

Strategic Insights -

Residential Services Corporation of America, a unit of The Prudential Insurance Company of America, has completed the acquisition of substantially all of the assets of Lomas Information Systems Inc., a subsidiary of Dallas-based Lomas Financial Corporation. This strategic move will allow RSCA to benefit from the increased productivity offered by RIS' servicing system and to offer this highly developed capability to the industry at large. The acquisition marks a significant expansion of RSCA's presence in the Dallas area, with virtually all of the former LIS employees expected to remain with the new company.

Key Takeaways:

  • Residential Services Corporation of America (RSCA) has completed the acquisition of Lomas Information Systems Inc.'s assets, solidifying its presence in the Dallas area.
  • The acquisition will allow RSCA to benefit from RIS' servicing system and offer this capability to the industry, enhancing productivity and competitiveness.
  • RIS will remain in the Dallas area and virtually all of the former LIS employees are expected to remain with the new company.
  • RSCA's head of technology, John C. Martin, will take on additional duties as chairman and CEO of RIS.
  • The RSCA servicing conversion is expected to complete in 1995, with approximately 1.3 million loans to be serviced by RIS' system.
  • RSCA and its affiliates have major sites in several locations, including Edison, N.J., Frederick, Md., Minneapolis, Pittsburgh, Springfield, Ill., and Westport, Conn.
  • The acquisition is seen as a strategic move, with RSCA's CEO Marvin I. Moskowitz stating it will allow the company to offer a highly developed capability to the industry at large.

Statistics:

  • $75 billion: the value of PHM's servicing portfolio that will be converted onto RIS' system.
  • 550,000: the number of loans in PHM's servicing portfolio.
  • 1.3 million: the number of loans expected to be serviced by RIS' system once the RSCA servicing conversion is completed.
  • 1995: the expected completion date of the RSCA servicing conversion.
  • 6 locations: the number of major sites RSCA and its affiliates have, including Edison, N.J., Frederick, Md., Minneapolis, Pittsburgh, Springfield, Ill., and Westport, Conn.

Sources:

  • Business Wire, "Residential Services Corporation of America Completes Acquisition of Lomas Information Systems", December 20, 1994.