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(Alliance News) - EJF Investments Ltd on Thursday said it has committed to investing an initial GBP3.8 million in an affiliate of Seneca Mortgage Servicing LLC.
Seneca Mortgage Servicing is a residential mortgage servicer in the US and is owned and controlled by EJF Capital LLC.
Jersey-based investment company EJF Investments added there is a potential to increase the commitment up to around GBP7.5 million, adding it believes the investment will allow it to take advantage of the economics derived from mortgage servicing rights as a result of the current interest rate environment.
"The investment manager expects the investment to be accretive to the company's portfolio in an area with high barriers to entry and in which the manager believes Seneca has significant experience and a strong competitive advantage," it added.
Shares in EJF were untraded on Thursday morning in London, last quoted at 122.00 pence each.
By Ife Taiwo; ifetaiwo@alliancenews.com
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