Union Security Mortgage to Be Sold

The parent company of Union Security Mortgage Co. said Thursday that it has agreed to sell the mortgage bank to a private company in Virginia for an undisclosed amount of cash.

Roxy Root, president of Union Security, said the transaction is expected to close at the end of the month and that the 80-employee operation will become a subsidiary of the newly created Knight Corp. in Herndon, Va.

The change in ownership is expected give Union Security a boost, Root said. A new office will be opened in the Bay Area within two months to add to offices in Santa Ana and Woodland Hills, he said. The mortgage banker has $650,000 in assets.

UF Bancorp, a savings and loan holding company in Evansville, Ind., did not sell Union Security’s mortgage servicing portfolio, which as of April 30 consisted of $692 million in mortgage loans. The parent company transferred that portfolio to its S&L; subsidiary, which will continue billing and collecting loan payments.