LOS ANGELES, Oct. 11 /PRNewswire/ -- Skyline Financial Corp. ("Skyline"), a leading independent direct mortgage lender, today announced that it has raised $8.2 million in Series B funding led by GRP Partners, with Chaparal Investments and Dallas Capital Management, Inc. participating. Amidst a new lending environment following the mortgage crisis, Skyline has emerged as a new breed of mortgage bank with the team and track record to attract institutional capital for growth. This new capital will be used to expand mortgage origination capacity, accelerate hiring of seasoned loan officers and continue acquisitions of mortgage brokerage firms.
The mortgage brokerage and lending industry has changed dramatically in the past four years. With increased capital requirements by investors, warehouse lenders and regulators, thousands of independent mortgage brokers and lenders have been put out of business. With thousands of seasoned mortgage professionals now looking for an entrepreneurial, yet stable work environment, Skyline has an opportunity to expand rapidly.
"We have implemented cutting-edge technology in a paperless loan processing environment to both automate and monitor loan processing, underwriting, and delivery," said Bill Dallas, Skyline's CEO. "This allows Skyline loan officers to deliver a higher quality of service than a traditional large bank while still enjoying the entrepreneurial environment of an independent lender." Dallas has been leading mortgage innovations for more than thirty years; he was co-founder of First Franklin, a mortgage bank, which was acquired by Bank of America for $232 million.
"For equity capital we sought out GRP Partners due to their deep knowledge and expertise in the financial services and technology fields," said Dallas. "With GRP Partners and our team of experienced professionals, Skyline is ideally positioned to capitalize on this unique market opportunity in a massive $2 trillion origination market."
With its sales force of more than 120 loan officers and 11 branches across California, Texas and Oregon, Skyline is currently originating $100 million of monthly loan volume and, with this new infusion of capital, is poised for significant growth. This financing is the first institutional round of financing raised by Skyline, which was founded in 1985.
"This investment was very attractive given Skyline's seasoned executive team and proven track record," said Brian McLoughlin, partner at GRP Partners and now a Board Member of Skyline. "The mortgage market is in turmoil as a result of the downturn in the real estate market, new regulations and net worth requirements. With reduced competition and the market's over-reliance on large banks to provide loans, a proven independent player like Skyline has a rare opportunity to attract and acquire both individuals and whole firms of top-producing, independent originators."
About Skyline Financial Corp.
Skyline was founded in 1985 and has gained recognition as a leading independent mortgage banking firm, helping existing and new customers obtain mortgage financing. The company is headquartered in Calabasas, California and currently has regional retail production locations in the Northwest and throughout California.
About GRP Partners
GRP Partners is a venture capital firm focused on investing in financial technology, digital content and distribution, and online business consumer services. Founded in 1996, the firm has invested approximately $1.3 billion on behalf of institutional limited partners in North America and Europe. With professionals in Los Angeles and London, GRP Partners has a global perspective on serving its portfolio companies and seeking investment opportunities across all stages of investment. For more information, visit www.grpvc.com.
SOURCE GRP Partners