Rocky Stubbs, former head of consumer-direct and digital mortgage for Capital One, has joined Flagstar as senior vice president and director of consumer-direct lending. Stubbs will lead Flagstar's Michigan-based direct-to-consumer group, along with a team of 20 professionals from Capital One who will operate from Dallas, Texas.
"Our Michigan team did a great job last year shifting to a purchase market, and the Capital One team will provide additional capacity to strengthen and scale our platform and take advantage of market opportunities. The combined team will enhance our capabilities in servicing recapture, digital acquisition, and home equity
,” said Kristy Fercho, president of mortgage for Flagstar.
Flagstar already provides home loan
s through a wholesale network of brokers and correspondents in all 50 states, as well as 95 retail locations in 27 states. These represent the combined retail branches of Flagstar and its Opes Advisors mortgage division.
At least 905 Capital One mortgage professional
s lost their jobs last year after the firm decided to stop new originations because of fierce competition in the industry. Capital One’s head of financial services, Sanjiv Yajnik, told employees then that the mortgage and home-equity loan businesses were “structurally disadvantaged,” which prevented them from being profitable or competitive for “the foreseeable future.”
Flagstar Bank expands in California with deal to acquire 8 bank branches
Lender to exit mortgage originations, 905 jobs lost
Flagstar Bancorp has taken in a team of former mortgage employees from Capital One, now that the latter has exited the industry. Flagstar’s move is part of efforts to expand its direct-to-consumer mortgage-lending platform.