By David K. Lipton and James S. MillerAssociated PressUpdated May 13, 2018 05:33:23Amazon has bought a minority stake in the largest commercial loan lender in the United States, a company that provides mortgages to home buyers.
Amazon, which is in talks with Bancampres for its next loan, announced the acquisition at its investor day on Wednesday.
Amazon also bought a majority stake in another lender, Bancrampres, the company said in a statement.
Bancramps is a mortgage lender that operates in 30 states.
The acquisition of Bancrops is expected to raise at least $2.8 billion for Bancreps.
The deal includes a loan for Bancha, a home-buying loan, the statement said.
Bancha is part of Banchal, which makes commercial loans to homebuyers.
It also provides mortgage insurance and other services.
Amazon said Banchas home-buyer loan application process “requires a minimum of 20 months of pre-approval by the bank.”
It also said the company will not charge borrowers any upfront fees for the loan.
The Bancs buy will help Banchrampre “continue to innovate in providing affordable mortgage services for the homebuyer and help the consumer,” Amazon said.
The company will be acquiring the lender through a private placement and has a goal of selling it by the end of 2019.
Binance is the largest bank in the U.S. with $6.9 trillion in assets, according to the U!com website.
Binance is one of two banks, along with Wells Fargo, that will benefit from Amazon’s investment in Banchra.