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Quality Home Loans to be acquired by Michael Klein
By Caroline Salls
Pittsburgh, Sept. 4 - Quality Home Loans will be acquired by hedge fund manager and entrepreneur Michael Klein, according to a company news release.
Specific terms of the deal were not disclosed.
"This transaction will greatly expedite Quality's emergence from bankruptcy and will provide the company with a strong balance sheet, empowering it to capitalize on its position as the market leader in the hard money residential mortgage industry," Klein said in the release.
The acquisition is subject to approval by the U.S. Bankruptcy Court for the Central District of California.
"In addition to providing Quality with growth equity, Michael brings significant business experience and financial acumen to the table," former Quality Home Loans chief executive officer John Gaiser said in the release.
Gaiser will remain with the company as a consultant.
Alim Kassam has been appointed as the company's new president and CEO.
Kassam previously was an investment banker at Lehman Brothers, was an investment analyst at CapitalSource and has spent the past three years working with Klein as a senior credit analyst at Pacificor, LLC.
"The opportunity for this company has never been greater," Klein said in the release. "The volume of loan applications at Quality is going through the roof as homeowners with significant equity and poor credit have fewer viable lenders to choose from in the current environment.
"This is a great time to be the 800-pound gorilla in the hard money space."
Quality Home Loans, an Agoura Hills, Calif., mortgage lender, filed for bankruptcy on Aug. 21. Its Chapter 11 case number is 07-13006.
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