MEMPHIS, Tenn.--June 19, 1997--Carter Primo Chesterton, L.P. (CPC) and FT Mortgage Companies have formed CPC Mortgage Capital, LLC, a joint venture principally to originate and service Fannie Mae multifamily loans.
The venture acquired the mortgage servicing rights to a $440 million multifamily loan portfolio from FT Mortgage as its initial transaction. FT Mortgage Companies is a wholly owned mortgage banking subsidiary of First Tennessee Bank National Assoc.
CPC Mortgage Capital will operate as one of only 26 lenders nationwide approved to originate loans under the Fannie Mae Delegated Underwriting and Servicing (DUS) program, Fannie Mae's key product line for purchasing individual multifamily loans. The principals of CPC Mortgage Capital expect to originate up to $100 million of multifamily mortgages within the next year. This activity will be conducted from its offices in Irvine, Calif., Chicago, Baltimore and New York.
Carter Primo Chesterton, the majority owner of CPC Mortgage Capital, is a commercial mortgage investment firm that acts on behalf of pension fund and other institutional investors. The firm is controlled by its two co-chairmen, Daryl J. Carter and Quintin E. Primo III. Carter and Primo are experienced real estate investment professionals with more than 16 years of experience each in the real estate investment area. CPC was formed in 1992 as a minority business enterprise.
"The joint venture and servicing rights acquisition with FT Mortgage has further established CPC as a major participant in the commercial mortgage investment market," said Daryl Carter. "Carter Primo Chesterton has now nearly $700 million in real estate loan assets under management."
Jim Witherow, president of FT Mortgage, added, "This joint venture will allow FT Mortgage Companies to focus on our core single family activity, with more than $23 billion in servicing and more than $10 billion in originations, while benefiting from the expertise and experience of the principals of CPC to support the development of affordable multifamily housing."
First Tennessee National Corporation, parent company of First Tennessee Bank N.A., is a nationwide, diversified financial services institution and is one of the 50 largest bank holding companies in the United States in market capitalization. Banking and other financial services are provided through the regional banking group and three national lines of business: FT Mortgage Companies, First Tennessee Capital Markets and transaction processing. The corporation's common stock is traded over-the-counter on the Nasdaq Stock Market's national market system under the symbol FTEN. It is listed in the financial section of most newspapers at FstTN Ntl and is included in the Standard and Poor's MidCap 400 index. More information is available at the company's Web site at http://www.ftb.com .