Gleacher & Company Inc. has announced that it intends to launch a residential mortgage banking initiative. In connection with that initiative, it has agreed to acquire, through its newly formed subsidiary, Descap Mortgage Funding LLC, all of the shares of common stock of ClearPoint Funding Inc. from Greg O’Connor, the founder and chief executive officer of ClearPoint Funding. The acquisition is subject to various regulatory approvals and customary closing conditions.
ClearPoint Funding is a residential, non-depository mortgage lender based in Marlborough, Mass. and is currently licensed as an independent mortgage lender in 13 states and Washington, D.C. ClearPoint Funding is a U.S. Department of Housing & Urban Development (HUD) Direct Endorsed Lender, and currently employs approximately 100 employees.
Mark Pappas, who heads the mortgage finance initiative at Gleacher & Company and is the President of the new subsidiary, will be responsible for overseeing Gleacher & Company’s interest in ClearPoint Funding after the acquisition is consummated. Prior to joining Gleacher & Company earlier this year, Pappas was one of the original founders of MortgageIT Inc., a wholly-owned mortgage banking subsidiary of MortgageIT Holdings Inc., a public company that was purchased by Deutsche Bank in 2007. As President of MortgageIT, Pappas helped to build the company and was also a member of its board of directors from its inception. The acquisition of ClearPoint Funding will reunite Pappas with several senior professionals with whom he worked at MortgageIT.
O’Connor will remain with ClearPoint Funding after the consummation of the acquisition by Gleacher & Company and will lead the overall operations effort of the mortgage lender.
“Launching this new initiative is a meaningful step in our overall growth strategy and an important addition to our mortgage platform," said Eric Gleacher, chief executive officer of Gleacher & Company. "I am pleased that someone of Mark’s experience and proven track record in the mortgage origination business will be leading our effort.”
Robert Fine, head of Gleacher & Company’s Mortgages, ABS and rates group, said, “Strategically, the acquisition of a mortgage bank to originate mortgages is a logical extension of our existing secondary mortgage and asset-backed business. I have known Mark for 20 years, and I am very pleased that our long history resulted in his joining Gleacher & Company to head this business line for us. The acquisition of ClearPoint Funding will provide a platform from which to build and execute a national mortgage origination strategy.”
For more information, visit www.gleacher.com.