Stearns Lending LLC
has announced the sale of its Delegated Correspondent Lending business to Flagstar Bancorp Inc.
Stearns Lending remains fully committed to its production in all other channels, including its non-delegated correspondent product offerings.
Stearns' business consists of approximately 250 correspondent relationships accounting for over $7 billion of agency and governmental residential mortgage loan production annually. Stearns' employees and subcontractors associated with the delegated business will transition to Flagstar.
“Over the last several years, we have successfully built production volume in our other channels, reaching a maturation that enables us to meet and exceed our needs,” said Brian Hale, CEO at Stearns Lending. “The strategic decision to exit the delegated Correspondent business is consistent with our evolution as a company.”
Alessandro P. DiNello, Flagstar's president and chief executive officer, said, "The acquisition of Stearns' correspondent platform gives us a tremendous opportunity to expand our market share in the delegated space. Throughout our analysis of the business, we have been impressed with the Stearns' team's approach to the correspondent channel, their focus on customer service and their commitment to sound risk management. We believe this team will be a strong cultural fit with the Flagstar team.”
Wells Fargo Securities served as financial advisor to Stearns and Sheppard, Mullin, Richter & Hampton LLP served as its legal counsel. BuckleySandler LLP served as legal counsel to Flagstar.
"We are excited to add the high-quality team from Stearns,” said DiNello. “We believe that there is a continued opportunity to grow our market share and expand our relationship with these correspondents. Being a bank, we can offer these new customers additional products and services, deepening our relationships with them.”