Major bank exec jumps ship for PE firm’s play at mortgage origination

by Diana Aqra24 May 2013
Ellington Financial, a billion-dollar hedge fund, is looking to acquire one or more originators to build a new residential mortgage origination platform.
The company announced Thursday it nabbed the former president of GMAC, Steve M. Abreu, to head those efforts.
No certain characteristics were given on the types of mortgage originators it hopes to purchase, but it would need to have full residential origination capabilities, an advisor for Ellington said. 
The company is one of many hedge funds making huge strides to get into the mortgage industry after larger banks lost their edge following the mortgage implosion. 
Jim Cutillo, president of Stonegate Financial, a mortgage  investment company which is backed the private-equity firm Long Ridge Equity Partners, said that following the financial crisis, “the banks lost,” and it's companies like Ellington that are winning. 
Stonegate’s mortgage originations increased 36% during the first quarter to US$ 1.9bn, surpassing any other mortgage originator, according to Mortgage Daily’s First Quarter 2013 Lender Ranking. 


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