Key buys auto loans
CLEVELAND - Key AutoFinance Group of Cleveland acquired the automotive commercial-lending portfolio of GE Capital Auto Financial Services of Barrington, Ill. The deal includes floorplan and commercial loan commitments to dealer groups in California, Connecticut, Florida, New Jersey, New Mexico, Texas, Utah and Wisconsin. Key has commercial lending relationships with 250 dealers and buys contracts from 4,000 dealerships in 30 states.
First American deal
SANTA ANA, Calif. - First American Corp. has agreed to acquire Credit Management Solutions Inc. in a stock transaction valued at about $52 million. The merged company will be called First American CMSI. The acquisition is expected to take effect in the second quarter. Credit Management Solutions, of Annapolis Junction, Md., provides software and services to automate credit decision making. First American, of Santa Ana, has three main business areas: title insurance, real estate information and consumer information and services, such as credit reporting for auto lending.
Subaru picks Morgan
NEW YORK - Subaru of America Inc. is switching its captive finance company business to J.P. Morgan Chase & Co., ending a 10-year relationship with Primus Automotive Financial Services Inc., a subsidiary of Ford Motor Credit Co. Primus will administer existing Subaru accounts. Chase Auto Finance, the bank's auto lending subsidiary based in Garden City, N.Y., will start buying Subaru contracts in 43 states and part of New Jersey on April 1. Subaru dealers in the affected states originate 30,000 to 35,000 loans and leases annually. Subaru's two independent distributors will stay with Subaru Acceptance Corp. The independent distributors are: Subaru of New England in Norwood, Mass., with dealers in the six New England states; and Subaru Distributors Corp. in Orangeburg, N.Y., with dealers in northern New Jersey and New York.