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Mechanics Bank Completes Sale of Fannie Mae Delegated Underwriting and Servicing Business Line to Fifth Third Bank

  • Mechanics Bancorp announced that its subsidiary Mechanics Bank completed the sale of its Fannie Mae Delegated Underwriting & Servicing business to Fifth Third Bank.
  • The transaction involved aggregate cash consideration of approximately $126 million.
  • Fifth Third Bank acquired Mechanics Bank's DUS servicing portfolio valued at approximately $1.8 billion, including associated escrow amounts.
  • Mechanics Bank employees who operate the DUS business were hired by Fifth Third Bank as part of the deal.
  • Mechanics Bancorp is headquartered in Walnut Creek, California, and serves as the financial holding company for Mechanics Bank.
  • As of March 31, 2026, Mechanics Bank held $21.4 billion in assets with 166 branches across California, Oregon, Washington, & Hawaii.