Flagstar Bancorp has completed its acquisition of Stearns Lending’s multibillion-dollar correspondent business. Final terms of the deal were not disclosed.
Stearns had about 250 correspondent relationships, which brought in more than $7 billion in lortgage loan production every year. Flagstar announced that it would acquire the correspondent business last month.
Under the terms of the deal, Stearns employees and subcontractors associated with the business will move to Flagstar, according to a HousingWire report.
“When we decided to exit this business for strategic reasons, 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,” Stearns CEO Brian Hale said in a statement when the acquisition was first announced. “Equally important, we wanted to make sure that our employees were with a reputable, well-run organization. Flagstar certainly met both our criteria.”
“The acquisition of Stearns’ correspontent platform gives us a tremendous opportunity to expand our market share in the delegated space,” Flagstar President and CEO Alessandro P. DiNello said in a statement last month. “…Being a bank, we can offer these new customers additional products and services, deepening our relationships with them.”
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