Mechanics Bancorp's subsidiary, Mechanics Bank, has agreed to sell its Fannie Mae Delegated Underwriting and Servicing (DUS) business line to Fifth Third Bancorp in an all-cash deal.
The DUS Business focuses on multifamily lending and servicing under the Fannie Mae DUS program, facilitating the process for approved lenders.
Fifth Third will acquire Mechanics Bank's $1.8 billion DUS servicing portfolio and hire the DUS Business employees under a definitive agreement.
Transaction Details
Mechanics Bank to sell DUS Business to Fifth Third Bancorp in an all-cash deal, subject to Fannie Mae's approval.
DUS Business Focus
The DUS Business streamlines multifamily lending and servicing with access to Fannie Mae-backed loan products.
Expected Impact
The transaction is expected to close in the first quarter of 2026, pending customary closing conditions and Fannie Mae's approval.
- The sale of the DUS Business to Fifth Third Bancorp signifies a strategic move for Mechanics Bank.
- Fifth Third's acquisition of the DUS servicing portfolio and talented employees is poised to enhance growth opportunities.
The agreement between Mechanics Bank and Fifth Third presents a promising future for the DUS Business, anticipating growth and development under new leadership.