IBM is expanding its mortgage servicing business by buying the operating assets of Wilshire Credit Corp. from Bank of America.
The deal, announced Oct. 5, includes Wilshire's mortgaging service platform and is proof of IBM's ambition to expand its capabilities around mortgage business process outsourcing solutions, according to IBM officials.
Financial terms were not disclosed.
"The acquisition of Wilshire's assets further demonstrates IBM's commitment to delivering robust and innovative mortgage solutions during a difficult time for the mortgage industry," Eric Ray, general manager of the Financial Services Sector at IBM Global Technology Services, said in a statement. "It also reinforces IBM's commitment to leveraging the full capabilities and resources of IBM to partner with our financial services clients in solving their most difficult challenges."
Wilshire will become part of IBM's Lender Business Process Services, a subsidiary of IBM. Officials with IBM said the company will also hire Wilshire's 900 or so employees.