“Aligning with a strong financial partner will provide us with the resources to continue executing our strategic plan as we aim to increase profitable market share growth,” says Glenn Stearns, chairman and founder of Stearns Lending, who just signed a deal with The Blackstone Group, which will acquire a majority stake in the company.
Stearns is currently ranked the number one wholesale lender
nationwide and the top privately owned purchase money mortgage lender in the country. Blackstone’s asset management businesses has over $330 billion in assets under management.
While originations – most notably refinances – have actually defied expectations for growth over the last year, lenders are already seeing how they can deepen their pockets to better fund deals going forward. One solution is by partnering together in order to share complementary services and deepen funding sources.
It was back in February that Walter Investment Management Corp.’s Green Tree Servicing announced its merger with Ditech Mortgage Corp to form Ditech – a move that goes into effect August 31.
In the case of Ditech, the merger provides them access to a broader variety of home financing products.
In a similar move, Mortgage REIT New Residential Investment Corp. agreed to purchase Ocwen Financial spinoff Home Loan Servicing Solutions for $1.3 billion, with that deal having been finalized in Q2 of this year.
Lenders hoping to increase their slice of the mortgage pie are looking to partnerships to help them remain competitive and to gain market share.