Stearns has about 250 correspondent relationships, bring in more than $7 billion in mortgage loan production every year, according to a HousingWire
report. Under the terms of the acquisition, employees and subcontractors in Stearns’ delegated correspondent business will move to Flagstar.
Stearns CEO Bryan Hale said Stearn’s decision to exit the delegated correspondent business was “consistent with our evolution of a company.”
“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 said in a statement. “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.”
The deal will make Flagstar the fourth-largest correspondent loan originator in the country, according to HousingWire.
“The acquisition of Stearns’ correspondent platform gives us a tremendous opportunity to expand our market share in the delegated space,” said Flagstar President and CEO Alessandro DiNello.
Terms of the acquisition were not disclosed. The deal is expected to close within 30 days, HousingWire reported.
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Flagstar Bancorp has announced plans to acquire Stearns’ Lending’s multibillion-dollar delegated correspondent lending business.