Credit Suisse Group said Tuesday that it had agreed to purchase Lime Financial Services and said it would expand its own residential mortgage securities business.
The Zurich company did not say how much it agreed to pay for Lime, a wholesale, nonprime lender in Lake Oswego, Ore.
Jim Healy, the head of fixed income for Credit Suisse's investment bank, said in a press release that "Lime represents an opportunity to incrementally grow our platform."
Lime funded $2.1 billion of loans last year and $250 million in the first quarter.
Mr. Healy said Credit Suisse added servicing and origination capacity to its mortgage securitization business in recent years as part of efforts to expand the business.
Last month the investment bank's efforts to buy a lending business were thwarted by Citadel Investment Group, which outbid Credit Suisse for the assets of the bankrupt ResMae Mortgage Corp.
Credit Suisse said the deal with Lime, which needs approval from state regulators, could close by summer. The company said it would hire Lime's senior management team as well as its marketing and sales force.
