Ponte Vedra Beach, Fla. - October 24, 2011  - Capital Markets Cooperative (“CMC”) has entered into a definitive agreement to acquire Cunningham & Company (“Cunningham”), subject to final regulatory approval.  Cunningham is a mortgage banker, a fully approved Fannie Mae and Freddie Mac seller/servicer, and a Ginnie Mae issuer. 

“CMC customers are concerned about secondary market liquidity for their loans, and we’re responding to their needs,” explained Tom Millon, President, CEO and founder of CMC.  “While our current correspondent partners will continue to purchase the majority of loans originated by our customers, this acquisition will provide additional liquidity.  The Cunningham platform will enable loan sales directly from our customers to Fannie Mae and Freddie Mac, the issuance of Ginnie Mae securities, and the retention of mortgage servicing rights.  These new market opportunities will make the originators in our cooperative stronger and better able to react to mortgage industry changes.”

Upon completion of the transaction, CMC will own 100 percent of Cunningham’s common stock.  Cunningham will retain its name, management team and continue to be led by company founder and CEO Hank Cunningham.
 
“Hank has a terrific reputation at the highest levels of the mortgage industry, serving this past year as chairman of MBA’s Residential Board of Governors and most recently receiving MBA’s Andrew D. Woodward Distinguished Leadership Award,” Mr. Millon added.  “He has built an exceptional mortgage company with which CMC has a long-standing relationship.  We are thrilled to welcome Hank and his team aboard.” 

“I am excited about the next chapter for Cunningham & Company,” said Hank Cunningham, who founded the company 21 years ago.  “The combination of Cunningham & Company and Capital Markets Cooperative makes us stronger than ever. It creates opportunities for us to grow our production platform, to retain servicing when economically viable, and to capitalize on changes in our rapidly-evolving industry.”

About Cunningham & Company
Cunningham & Company is an independent mortgage banking firm that originates residential mortgage loans primarily in the state of North Carolina.  Cunningham employs more than 100 mortgage professionals operating in 11 North Carolina communities.  It is a fully approved Fannie Mae and Freddie Mac seller/servicer, and a Ginnie Mae issuer. Hank Cunningham founded the company in Greensboro, N.C. in 1990.  For more information, visit www.cunninghammortgage.com or call (800) 273-0802.

About Capital Markets Cooperative
Capital Markets Cooperative provides mortgage bankers with the economies of scale and the expertise to reduce risk and maximize profit in the secondary market.  Regarded as the premiere secondary marketing specialist in the mortgage industry, CMC works with financial institutions nationwide to break traditional barriers in capital markets and take performance to the next level of profitability.  CMC’s participating financial institutions originate more than $25 billion of mortgages annually, and CMC executives have managed more than $500 billion of mortgage volume.  Affiliates of WL Ross & Co. LLC (“WL Ross”) own stock in CMC’s holding company, Capital Markets Holdings, Inc. WL Ross is a leading private equity firm that has sponsored and managed more than $10 billion of investments, many of which have been in the financial services sector.
For more information, visit www.capmkts.org or call (904)-543-0052.