Sale of Correspondent Platform to Flagstar Bancorp represents Company’s evolution, as maturation of other production channels fuels growth
SANTA ANA, Calif.–(BUSINESS WIRE)–Stearns Lending, LLC, a leading provider of mortgage lending services in Wholesale, Retail, Strategic Alliances and Consumer Direct sectors, today announced the sale of its Delegated Correspondent Lending business to Flagstar Bancorp, Inc. The Company remains fully committed to its production in all other channels, including its Non-Delegated Correspondent product offerings.
“Over the last several years we have successfully built production volume in our other channels, reaching a maturation that enables us to meet and exceed our needs. The strategic decision to exit the delegated Correspondent business is consistent with our evolution as a Company,” said Brian Hale, CEO at Stearns Lending.
Thanks to its team members the Stearns Correspondent Lending team attained a nationally recognized presence in the channel over the last two years, growing production volume seven-fold from 2014 through 2016. Flagstar anticipates offering positions to all of the Stearns employees impacted by the sale.
“In seeking a purchaser of our correspondent channel, we had two key objectives: first, we wanted to ensure that our network of correspondent lenders – consisting of community banks, credit unions and builder-owned mortgage companies – was with a lender that would continue to serve them well,” Hale continued. “Equally important, we wanted to make sure that our employees were with a reputable, well-run organization. Flagstar certainly met both criteria and has been a model partner throughout the transition.”
Wells Fargo Securities served as financial advisor to Stearns and Sheppard, Mullin, Richter & Hampton LLP served as its legal counsel. BuckleySandler LLP served as legal counsel to Flagstar.
For more than 27 years, Stearns has been helping employees, borrowers and business partners to reach their goals by successfully exceeding expectations and leading the industry with innovation and efficiency.
About Stearns Lending, LLC
Stearns Lending, LLC is a leading provider of mortgage lending services in Wholesale, Retail, and Strategic Alliances sectors throughout the United States where licenses are held. The company was ranked as the #3 Wholesale Lender nationwide by Inside Mortgage Finance in June of 2016.
Stearns Lending is an equal housing lender and is licensed to conduct business in 49 states and the District of Columbia. Additionally, Stearns Lending is an approved HUD (United States Department of Housing and Urban Development) lender; a Single Family Issuer for Ginnie Mae (Government National Mortgage Association); an approved Seller/Servicer for Fannie Mae (Federal National Mortgage Association); and an approved Seller/Servicer for Freddie Mac (Federal Home Loan Mortgage Corporation). Stearns Lending is also approved as a VA (United States Department of Veterans Affairs) lender, a USDA (United States Department of Agriculture) lender, and is an approved lending institution with FHA (Federal Housing Administration). Stearns Lending, LLC is located at 4 Hutton Centre Drive, 10th Floor, Santa Ana, CA 92707. Company NMLS# 1854.
For more information, visit www.stearns.com.
About Flagstar
Flagstar Bancorp, Inc. (NYSE: FBC) is a $14.1 billion savings and loan holding company headquartered in Troy, Mich. Flagstar Bank, FSB, provides commercial, small business, and consumer banking services through 99 branches in the state. It also provides home loans through a wholesale network of brokers and correspondents in all 50 states, as well as through 41 retail locations in 21 states. Flagstar is a leading national originator and servicer of mortgage loans, handling payments and record keeping for $80 billion of home loans representing 383,000 borrowers. For more information, please visit flagstar.com.
Contacts
Stearns Lending, LLC
Brad Hoke, 972-521-1057
Executive Vice President
bhoke@stearns.com
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