Caliber Funding LLC and Vericrest Financial Inc. have announced that the companies' shareholders, comprised of various affiliates of Lone Star Funds, have agreed to combine Vericrest and Caliber to create a full-service, residential mortgage banking organization offering both loan originations and loan servicing solutions. The combined organization will continue to be owned by and have the capital backing of Lone Star Funds.
Vericrest's and Caliber's complementary business models will allow for seamless integration, providing a strong foundation for growth through substantial synergies. Most importantly, as a full-service mortgage banking institution with an extensive footprint across the U.S., the combined organization will better serve its customers through an enhanced range of best-in-class lending and servicing solutions.
"I am thrilled about combining the operations of Vericrest and Caliber to create a full-service mortgage banking organization," said Jim Ferriter, president of Caliber. "Loan originations and servicing are a natural fit, and we expect the combined company will generate significant revenue opportunities to support continued growth. We are looking forward to working with Vericrest's talented team of professionals and to building a larger, more diverse organization that offers greater opportunities to our customers, employees and investors."
"Combining Caliber and Vericrest will create tremendous new opportunities for growth in our target markets and within our organizations," said David Schneider, chief executive officer of Vericrest. "Until recently, Vericrest only offered servicing solutions to affiliates of Lone Star. Since offering our unique, proactive mortgage servicing solutions to other investors, we have experienced significant growth. Caliber's innovative lending platform is a perfect complement to our servicing business and will enable us to refinance and retain loans in our loan servicing portfolio, as well as retain servicing rights on the loans Caliber originates. We believe the combined company will allow us to provide innovative and cost-effective mortgage solutions across a much broader customer base."
In light of customary regulatory and legal conditions and approvals, the combination is expected to close within four to six months. While integration planning is already underway, Caliber and Vericrest will continue to operate independently until the final closing.