Caliber Home Loans has agreed to acquire specific assets of Banc Home Loans, the home loan division of Banc of California.

“The assets to be acquired by the purchaser include, among other things, the leases relating to the bank's dedicated mortgage loan origination offices and the bank's "pipeline" of residential mortgage loan applications for loans,” Banc of California said in a filing with the US Securities and Exchange Commission (SEC).

Caliber will pay $25m in cash for the deal, along with another $2.7m upon closing of the transaction.

Caliber will also acquire the mortgage servicing rights (MSRs) on about $3.8bn in unpaid balances of conventional agency mortgages from Banc of California for $36m.

The bank said that the MSR sale will lead to a net loss of $3.5m but “reduce earnings volatility going forward”.

The deal will lower the bank’s number of operating locations by over 60%, and reduce its workforce to less than 950 from over 1,800, Banc of California said in the filing.

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“As a result of the transaction, the bank expects to improve its ongoing consolidated efficiency ratio. Additionally, the bank expects to realize one-time expenses related to the transaction totaling approximately $4 million,” the bank said.