GOV. EASLEY ANNOUNCES 600 JOBS IN MECKLENBURG COUNTY
IBM Lender Process Services To Expand in Charlotte

RALEIGH - Gov. Mike Easley announced today that IBM Lender Business Process Services, a wholly owned subsidiary of International Business Machines Corp., will hire 600 workers during the next four years and invest $2.4 million to open a mortgage processing center in Charlotte. A state Job Development Investment Grant helped make the project possible.

"Companies such as IBM continue to locate and expand in North Carolina because they find a business-friendly atmosphere along with a dedicated, well-trained workforce,” Easley said. “Our commitment in these areas has North Carolina consistently recognized by national business publications such as Forbes, Chief Executive and Site Selection as a premier location for companies to do business and succeed in the global economy."

Formed in 2007, IBM Lender Business Process Services uses industry-leading automation and imaging technology to process loan applications for the mortgage industry. The company currently employs 68 people at its Charlotte headquarters, which will be expanded to accommodate the company’s primary mortgage processing/fulfillment center. Salaries for the 600 new jobs will vary according to responsibilities and function, but the overall average pay for the new positions will be more than $59,000 a year not including benefits. That is more than the Mecklenburg County average of $48,724.

The company plans to spend about $2.4 million on the expansion which, in addition to mortgage processing, will include a “mortgage academy” to train people who will staff the processing centers.

“The strong business climate of North Carolina and a talent pool rich in the skills that we require make Charlotte a natural location as we grow our Lender Business Process Services business,” said Greg Sullins, executive director, IBM Lender Business Process Services. “As clients continue to turn to IBM to transform their mortgage origination operating model, we are excited about partnering with Gov. Easley to expand our presence in North Carolina and meet that growing demand."

Other partners who assisted with this announcement include: the N.C. Department of Commerce; N.C. Community College System; Charlotte Chamber of Commerce and Duke Energy.

“The coordinated efforts of these partners is one reason why North Carolina has been so successful in business recruitment,” said Sen. Malcolm Graham, (D-Mecklenburg), who serves on the Senate Commerce Committee. “I will continue to work in the General Assembly for economic development policies that send the signal to businesses that North Carolina is the place to locate, grow and succeed.”

“This announcement further enhances the strength of the financial services industry in the Charlotte area, which is second only to New York as our nation’s leader,” said State Rep. Drew Saunders, (D-Mecklenburg), who is a member of the House Financial Institutions Committee. “The goal of the JDIG program is to bring good jobs such as these to the people of our state.”

The state’s Economic Investment Committee voted today to award a Job Development Investment Grant to IBM Lender Business Process Services. This is the 75th JDIG award announced since Easley and the General Assembly started the program in 2002, and the fifth awarded this year. Under terms of the 10-year agreement, the N.C. Department of Commerce estimates the project will:

• Generate a cumulative gross product value of $911.92 million.
• Produce a positive, cumulative net state revenue impact of $16.69 million.
• Contribute up to $3.26 million to the state’s Industrial Development Fund for infrastructure improvements in the most economically distressed areas of the state.

For each year in which the company meets the required performance targets, the state will provide a grant equal to 70 percent of the state personal income withholding taxes derived from the creation of new jobs. Should the company create the jobs called for under the agreement and sustain them for 10 years, the agreement could yield as much as $9.78 million in maximum benefits for IBM.

Job Development Investment Grants are awarded only to new and expanding businesses and industrial projects whose benefits exceed the costs to the state and which would not be undertaken in North Carolina without the grant. Since the first grant was awarded in 2003, the program has been responsible for creating more than 27,000 jobs and $4 billion in investment in North Carolina. To date, 60 percent of all JDIGs have been awarded to companies that are expanding existing North Carolina operations.

For more information about IBM, including employment opportunities, visit www.ibm.com.

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