Stonegate Mortgage announced that it has entered into a binding letter of intent to acquire the wholesale lending channel and certain distributed retail assets of Nationstar Mortgage Holdings Inc.
For the first six months of this year, Nationstar’s wholesale lending channel originated $3.26 billion in mortgages. Pursuant to the terms of the letter of intent, Stonegate agreed to purchase the assets and offer employment to certain employees associated with these businesses. The purchase price will be the net book value of the fixed assets acquired by Stonegate Mortgage. For Stonegate Mortgage, the acquisition complements the company’s existing wholesale and retail channels and accelerates its geographic expansion.
“Since our founding in 2005, Stonegate has focused on building a fully integrated and diversified mortgage banking platform. This acquisition enables us to further drive retail originations and serve an even larger group of mortgage brokers through our wholesale channel”, said Jim Cutillo, chief executive officer of Stonegate Mortgage. As part of the acquisition, Stonegate will gain a team of leaders from Nationstar. “We are excited to have such an outstanding group joining our team to strengthen what I believe is the best non-bank mortgage company in the industry today. Having completed our IPO in October, we are well-positioned to execute our business plan. This is one of a number of key initiatives that will help drive near and long-term shareholder value,” continued Cutillo.
“We appreciate the efforts of the team in the wholesale channel and are pleased to have reached agreement on this transaction, which fits well within Stonegate’s focus on branch geographic expansion,” said Jay Bray, CEO of Nationstar Mortgage. “The transaction also fits well within Nationstar’s strategic focus on servicing, Solutionstar, consumer direct originations and correspondent.”