Perpetual, the Australian wealth management firm, is selling its mortgage processing division to the local subsidiary of a major US asset management firm.

The decision to offload its mortgage arm Lenders Mortgage Services to FAF International Property Services, the Australian subsidiary of First American Financial Corp, is part of a refocusing effort that will have Perpetual let go of its non-core businesses. In a statement, managing director Geoff Lloyd called the sale a "milestone" in line with its three-year plan to become the largest independent wealth manager in the country by 2015. 

Terms of the deal were not disclosed.

"While PLMS is competitively well-positioned, Perpetual ultimately was not its natural owner. PLMS fits better with a company that can add scale and technological innovation particular business activity," noted Lloyd. 

The transaction is expected to be finalised by 30 September 2012.