ZAIS Financial agrees to purchase of mortgage originator

GMFS is a privately-owned mortgage company originating mortgages primarily in the southern U.S. Founded in 1999 and HQ'd in Baton Rouge, GMFS originated about $1.4B in mortgages last year, generating income of about $14.7M. Its portfolio of MSRs has about $2.2B in UPB.

Terms: $61M in cash, two contingent $1M deferred premium payments, plus additional consideration based on future production and profits.

The purchase is expected to be slightly dilutive to ZFC's 2014 earnings, mostly thanks to transaction expenses, but accretive beginning in 2015.

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