Stonegate Mortgage Corporation has announced that it is launching its non-agency (jumbo) loan product through its own network of retail offices as well as through its more than 700 approved third party originators in more than 32 states across the country. Stonegate’s non-agency jumbo loans will be 15-and 30-year fixed rate residential loans between $417,001 and up to $2,000,000. With this new offering, homeowners will have the ability to purchase or refinance single family and two-unit owner occupied properties, one unit second homes, planned unit developments and rural properties of 10 acres or less.
“Stonegate is committed to providing a superior customer experience with an unparalleled level of service to all of our partners whether that is direct to homeowners through our own retail branches or through approved third-party originators,” said Eric Scholtz, executive vice president of structured finance for Stonegate. “It is clear that there is growing demand for jumbo fixed rate loans and that Stonegate has an opportunity, as a highly-focused, non-bank provider of capital and liquidity, to provide the right kind of housing finance products to this segment of the market.”
Stonegate recently announced that it has raised $115 million in a private offering of its common stock. FBR Capital Markets & Co acted as the sole initial purchaser and placement agent. In the transaction, Stonegate Mortgage sold a total of 6.4 million shares of its common stock for an offering price of $18 per share. The total net proceeds to Stonegate Mortgage were approximately $106.8 million.
“Non-agency fixed rate loans are a really underserved market. Our experience has been that traditional banks are more focused on their ARM offerings since they are a better fit with their balance sheets from an asset and liability standpoint," said Scholtz. "We are hearing from borrowers that they want fixed rate alternatives to lock-in the historically low mortgage rates. As we focus on this market, we see a broader opportunity to help rebuild a high-quality, non-agency market which will continue to grow as the GSE’s footprint shrinks.”
