Flagstar Closes on Acquisition of Santander Mortgage Warehouse Portfolio

Mar 12, 2018

Flagstar has closed its previously announced transaction to purchase the mortgage warehouse loan portfolio from Santander Bank, including approximately $1.7 billion in mortgage warehouse loan commitments. Terms of the transaction were not disclosed, and Flagstar stated it will hire Santander’s existing relationship managers.

"We're delighted to welcome Santander's customers and employees to Flagstar," said Alessandro DiNello, President and Chief Executive Officer of Flagstar Bancorp. "This transaction combines two talented warehouse teams dedicated to customer service, and the biggest winner is our new, combined customer base that will now be dealing with the fourth largest warehouse lender in the country. Customers can look forward to custom-crafted solutions delivered by knowledgeable, experienced warehouse lenders.”

The acquisition is expected to reduce the Company's Tier One leverage ratio by approximately 40 basis points and should be moderately accretive to 2018 earnings.

"The purchase also adds volume in an attractive asset class with good spreads and very low credit risk,” added DiNello. “It's complementary to our existing business, bringing relationships that average around $40 million in commitments—four times larger than our existing book. While the pricing is slightly narrower than Flagstar's book, these loans typically have approximately 50 percent longer days online and so enhance our net interest income. We plan to add the new business to our existing platform."

About the author

NationalMortgageProfessional.com

Link copied

Published

Mar 12, 2018

Analysis and Data

One-Third Of Homeowners Expect To Refinance Despite Elevated Mortgage Rates

Many prospective refinancers carry mortgage rates above 5%, suggesting demand could accelerate if borrowing costs decline

One-third of homeowners say they are either currently refinancing or likely to refinance within the next two years, despite mortgage rates remaining well above pandemic-era lows, according to new survey data released by Refi.com.The findings challenge a common industry narra...

C-Suite Strategies

Two Harbors Reaffirms August Closing Timeline For CrossCountry Deal

MSR-focused REIT says it will continue regular dividends through closing as the proposed sale advances following UWM's decision not to submit a revised bid

Two Harbors Investment Corp. used its latest dividend announcement to reaffirm expectations that its pending sale to CrossCountry Mortgage remains on track for an August closing.The mortgage servicing rights (MSR)-focused real estate investment trust said it plans to continu...

Jul

New Orleans, LA

More from

Industry News

Commercial, Multifamily Mortgage Debt Tops $5 Trillion In Q1

MBA says outstanding debt grew by $26.3 billion in the first quarter, led by multifamily lending and increased holdings from banks, agencies, and life insurers

Industry News

Jun 18, 2026

Fed Holds Rates Steady, But Outlook Dims For Mortgage Rate Relief

The Federal Reserve left rates unchanged but updated projections show more policymakers expecting additional hikes

Industry News

Jun 18, 2026

Congress Nears Final Vote On 21st Century ROAD to Housing Act

Senate voted 87-8 to advance House-amended package, with final votes expected in coming days

Industry News

Jun 17, 2026

Florida Pending Sales Signal Strong Summer Housing Market

Closed sales rise for a ninth straight month as inventory gives buyers more negotiating power