PSMH Inc., a mortgage banking and brokerage company based in New Mexico, has signed a letter of intent to acquire Swampscott’s American Trust Mortgage Inc. (ATMI).

Under the terms of the LOI, ATMI will be acquired by PSMH and become a wholly owned subsidiary of PrimeSource Mortgage Inc. (PSMI), the mortgage banking subsidiary of PSMH. Upon the closing of the transaction, ATMI shareholders will receive common shares from PSMH.

The acquisition will further expand the company’s national footprint throughout the New England states. Also at closing, Paul Mignone, the primary shareholder, will join the board of directors of PSMH, according to a statement.

Closing of the transaction is subject to further negotiations and the execution of a definitive agreement between the parties. It is anticipated the closing will occur in the next 40 days. The shares to be issued in this transaction will not have been registered under the Securities Act and may not be offered or sold absent registration or applicable exemption from registration requirements.

"We are thrilled about this acquisition. ATMI is a quality operation that will be a significant part of our new mortgage banking network," said Jeff Smith, president of PSMI. "In addition, having Paul join our management team will be invaluable to our growth in the very near future."