TROY, Mich., Feb. 6, 2017 /PRNewswire/ -- Flagstar Bancorp, Inc. (NYSE: FBC) announced today the signing of a definitive agreement under which it will acquire the Residential Mortgage Delegated Correspondent Lending platform of Stearns Lending, LLC, (Stearns) along with certain related assets. Terms of the transaction were not disclosed. The transaction is subject to customary closing conditions and is expected to close within the next 30 days.
Stearns' business consists of approximately 250 correspondent relationships accounting for over $7 billion of agency and governmental residential mortgage loan production annually. Stearns' employees and subcontractors associated with the delegated business will transition to Flagstar.
"The acquisition of Stearns' correspondent platform gives us a tremendous opportunity to expand our market share in the delegated space," remarked Alessandro P. DiNello, Flagstar's president and chief executive officer. "Throughout our analysis of the business, we have been impressed with the Stearns' team's approach to the correspondent channel, their focus on customer service and their commitment to sound risk management. We believe this team will be a strong cultural fit with the Flagstar team.
"We are excited to add the high-quality team from Stearns. We believe that there is a continued opportunity to grow our market share and expand our relationship with these correspondents. Being a bank, we can offer these new customers additional products and services, deepening our relationships with them," observed DiNello.
Stearns' chief executive officer, Brian Hale, commented, "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. Equally important, we wanted to make sure that our employees were with a reputable, well-run organization. Flagstar certainly met both our criteria."
Upon closing, the acquisition will make Flagstar the 4th largest correspondent mortgage loan originator in the United States, based on year-to-date volumes through September 30, 2016 as reported by Inside Mortgage Finance. Wells Fargo Securities served as financial advisor to Stearns and Sheppard, Mullin, Richter & Hampton LLP served as its legal counsel. BuckleySandler LLP served as legal counsel to Flagstar.
Flagstar Bancorp, Inc. (NYSE: FBC) is a $14.1 billion savings and loan holding company headquartered in Troy, Mich. Flagstar Bank, FSB, provides commercial, small business, and consumer banking services through 99 branches in the state. It also provides home loans through a wholesale network of brokers and correspondents in all 50 states, as well as through 41 retail locations in 21 states. Flagstar is a leading national originator and servicer of mortgage loans, handling payments and record keeping for $80 billion of home loans representing 383,000 borrowers. For more information, please visit flagstar.com.
About Stearns Lending, LLC
Stearns Lending, LLC is a leading provider of mortgage lending services in Wholesale, Retail, and Strategic Alliances sectors throughout the United States where licenses are held. The company was ranked as the #3 Wholesale Lender nationwide by Inside Mortgage Finance in June of 2016. Stearns Lending, LLC is located at 4 Hutton Centre Drive, 10th Floor, Santa Ana, CA 92707. Company NMLS# 1854. For more information, visit www.stearns.com.
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of Flagstar Bancorp, Inc.'s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause the Company's actual results to differ materially from those described in the forward-looking statements can be found in periodic Flagstar reports filed with the U.S. Securities and Exchange Commission, which are available on the Company's website (flagstar.com) and on the Securities and Exchange Commission's website (sec.gov). Other than as required under United States securities laws, Flagstar Bancorp does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.
For further information
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SOURCE Flagstar Bancorp, Inc.