A rapidly expanding originator which has announced its plans to go public, and has said it will focus on jumbo loans as a growth area
A rapidly expanding originator which has announced its plans to go public, and has said it will focus on jumbo loans as a growth area.
Stonegate Mortgage filed registration statement for an IPO last week with the SEC which is currently being reviewed by the agency.
Stonegate has grown dramatically in the past several years, expanding branches and its correspondent and wholesale channels.
In a May interview CEO, John Cutillo said that he was “very bullish on the jumbo loan market,” explaining that although the market was only 5.5% of all mortgage loans originated, they comprised 19% of all originations’ value. There is a lot of growth still in this market, he explained.
“We have a team assembled in this space,” he added. “We are different than other aggregators because we take on Mainstreet,” Cutillo added.
Rather than the jumbo loans that are typically made in California or New York, where prices are high, these originations are located in states like Illinois and Indiana, he added.
Cutillo said that it recently expanded warehouse programs to small and mid-sized correspondents to do non-agency jumbo lending in May.
