Legg Mason Inc. plunged further into commercial mortgage banking yesterday, announcing it had purchased the $1.6 billion mortgage-servicing division of Chevy Chase-based B. F. Saul Co.
"The addition of B. F. Saul Co.'s commercial mortgage division is a good strategic fit for Legg Mason," said Raymond A. Mason, the company's chairman. "We are able both to increase our mortgage-servicing portfolio and add strong new mortgage-banking capabilities in the Virginia and Washington, D.C., area."
"The transaction is the sale of servicing rights to the loans, not the loans themselves," said Peter Sellwood, a B. F. Saul vice president who will become executive vice president of Legg Mason's mortgage-banking operation. "It brings a diversification of investors and resources" to the companies, he said.