Direct Finance Corp. of Hanover has acquired First Call Mortgage Co. of Andover, creating the largest reverse mortgage company in New England, the company said.

First Call Mortgage was one of four firms in Massachusetts sanctioned last month for allegedly violating that state's laws governing reverse mortgages, according to published reports.

The transaction was an asset purchase, and the terms of the private acquisition were not disclosed.

“This is a significant event for Direct Finance Corp., and reflects my continued confidence in the mortgage industry in spite of these difficult times, Alain Valles, president of Direct Finance Corp. and current president of the Massachusetts Mortgage Association said.”

Direct Finance Corp. will absorb the loan officers and support staff of First Call Mortgage, retaining approximately 40 people.

The former First Call Mortgage president, Carl D. McFadden, will have no ownership of Direct Finance Corp.