New York firm poised to be nation’s largest non-bank originator

by Donald Horne17 Aug 2015
One private-equity funded investment bank based out of New York has been adding a number of significant acquisitions to its portfolio, positioning itself as potentially the next biggest non-bank originator in the nation.

“We see great opportunity in the U.S. lending and resulting investment space,” says Brian Libman, executive chairman of Finance of America Holdings. “The people and operations associated with these businesses, the capital of our partners and strategic items … should provide us with a significant and enduring edge in this highly competitive industry.”

Finance of America Holdings – a Blackstone portfolio company – has been busy this summer snapping up several major lenders, including such heavy hitters as Gateway Funding Diversified Mortgage Services, Pinnacle Capital Mortgage and certain assets and operations of PMAC Lending Services.

And what makes companies in the crosshairs for acquisition attractive is more than just the bottom line, but corporate values.

“We are a company with 1940s values,” Blackstone’s President and CEO Bruno Pasceri told MPA. “When I am speaking to a recruit I look for integrity, character and family values that will result in a lifelong partnership. I want my employees to contribute to the growth and development of Gateway.”

Gateway Funding is licensed in 44 states with over 80 branches, a direct seller/servicer to Fannie Mae, Freddie Mac and Ginnie Mae with over $1 billion in its servicing portfolio.

Finance of America through its operating subsidiaries will rank among the largest non-bank originators in the United States, licensed in over 45 states.

It will operate in each of the retail, wholesale and correspondent channels and have its own servicing capabilities.

Additionally, it will operate approximately 300 retail lending branches, five wholesale and correspondent centers and employ over 3,000 professionals, of which over 1,400 are licensed loan officers.



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