H & R Block to sell mortgage unit

H & R Block announced today that it will sell its Option One Mortgage Corp. unit to private equity firm Cerberus Capital Management LP.

APR 20, 2007

By Bloomberg

H & R Block announced today that it will sell its Option One Mortgage Corp. unit to private equity firm Cerberus Capital Management LP. New York-based Cerberus, which created a company called OOMC Acquisition Corp. to execute the purchase, agreed to pay $300 million less than the value of Option One's tangible net assets, which amounted to $1.27 billion at the end of January. The value of the transaction will be calculated on the date of closing, which is expected to be Oct. 31. The Kansas City-based tax preparer brought the unit to market in November, in an effort to bolt the home loan business as defaults in the subprime industry continued to rise (InvestmentNews, November 7) . H&R Block also said it is closing the unit's H&R Block Mortgage Corp., but will continue to provide its retail tax and other clients with prime residential mortgage loans through H&R Block Bank.

Autopilot surges to $750M AUM, touts RIA growth as users copy Pelosi, Buffett trades

With $750 million in assets and plans to hire a RIA Growth Lead hire, Autopilot is moving beyond retail to court advisors with separately managed accounts and integrations with RIA custodians such as Schwab and Fidelity.

RIA wrap: Former Procyon advisors launch Third View, ex-Rochdale CEO resurfaces in New York

Elsewhere on the East Coast, a Boca Raton-headquartered shop has acquired a fellow Florida-based RIA in "a natural evolution for both organizations."

$43B Beacon Pointe taps seasoned retirement plan specialist to lead in DFW region

After advising on nearly $700 million in retirement assets, 27-year veteran Greg Mykytyn is bringing his expertise in ESOP and 401(k) plans to the national RIA in Texas.