Household HSBC Watch

HSBC Finance Corporation, a wholly-owned subsidiary of HSBC North America Holdings Inc., said Tuesday it has reached agreement with the shareholders of Solstice Capital Group Inc. to acquire 100% of the privately held US-based mortgage lender.

The transaction is subject to regulatory approval.

Solstice Capital Group, based in Irvine, CA, had gross assets of USD $36.1 million at Jun. 30, 2006. The firm was founded in 1998 and has 170 employees based primarily in Irvine, California, with satellite locations in Phoenix, Arizona, and Las Vegas, Nevada. The company markets a range of mortgage and home equity products to customers through direct mailing.

Tom Detelich, president of the consumer lending division of HSBC Finance Corporation said: “Solstice Capital Group is an excellent strategic fit for HSBC. This acquisition complements our strong bricks and mortar branch network. We will be pleased to offer customers more choices and build upon the solid platform that Solstice has established in the direct-to-consumer mortgage origination market.”