JPMorgan Will Buy Nearly $2 Billion of Mortgages to Facilitate Banc of California’s PacWest Deal

JPMorgan Chase & Co. will buy almost $2 billion worth of mortgages to facilitate Banc of California Inc.’s purchase of PacWest Bancorp.

The nation’s largest bank has entered into an agreement to buy $1.8 billion of single-family residential loans at a discount, according to people briefed on the matter who asked not to be identified discussing private information.

Banc of California said in a presentation Tuesday that it had entered into a “contingent forward asset sale agreement” for its residential mortgage portfolio, but didn’t name the buyer. Banc of California and PacWest plan to sell about $7 billion of loans, mortgage bonds and other assets in their securities portfolios to pay down expensive borrowings.

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