TROY, Mich., Feb. 6, 2017 /PRNewswire/ -- Flagstar
Bancorp, Inc. (NYSE: FBC) announced today the signing of a
definitive agreement under which it will acquire the Residential
Mortgage Delegated Correspondent Lending platform of Stearns
Lending, LLC, (Stearns) along with certain related assets. Terms of
the transaction were not disclosed. The transaction is subject to
customary closing conditions and is expected to close within the
next 30 days.
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.
"The acquisition of Stearns' correspondent platform gives us a
tremendous opportunity to expand our market share in the delegated
space," remarked Alessandro P.
DiNello, Flagstar's president and chief executive officer.
"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.
"We are excited to add the high-quality team from
Stearns. 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," observed DiNello.
Stearns' chief executive officer, Brian
Hale, commented, "When we decided to exit this business for
strategic reasons, we had two key objectives: first, we wanted to
ensure that our network of correspondent lenders – consisting of
community banks, credit unions and builder-owned mortgage companies
– was with a lender that would continue to serve them well. Equally
important, we wanted to make sure that our employees were with a
reputable, well-run organization. Flagstar certainly met both our
criteria."
Upon closing, the acquisition will make Flagstar the
4th largest correspondent mortgage loan originator in
the United States, based on
year-to-date volumes through September 30,
2016 as reported by Inside Mortgage Finance. 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.
About Flagstar
Flagstar Bancorp, Inc. (NYSE: FBC) is a $14.1 billion savings and loan holding company
headquartered in Troy, Mich.
Flagstar Bank, FSB, provides commercial, small business, and
consumer banking services through 99 branches in the state. It also
provides home loans through a wholesale network of brokers and
correspondents in all 50 states, as well as through 41 retail
locations in 21 states. Flagstar is a leading national originator
and servicer of mortgage loans, handling payments and record
keeping for $80 billion of home loans
representing 383,000 borrowers. For more information, please visit
flagstar.com.
About Stearns Lending, LLC
Stearns Lending, LLC is a leading provider of mortgage lending
services in Wholesale, Retail, and Strategic Alliances sectors
throughout the United States where
licenses are held. The company was ranked as the #3 Wholesale
Lender nationwide by Inside Mortgage Finance in June of
2016. Stearns Lending, LLC is located at 4 Hutton Centre
Drive, 10th Floor, Santa Ana, CA
92707. Company NMLS# 1854. For more information, visit
www.stearns.com.
Forward-Looking Statements
This communication contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements are based on the current beliefs and
expectations of Flagstar Bancorp, Inc.'s management and are subject
to significant risks and uncertainties. Actual results may differ
from those set forth in the forward-looking statements. Factors
that could cause the Company's actual results to differ materially
from those described in the forward-looking statements can be found
in periodic Flagstar reports filed with the U.S. Securities and
Exchange Commission, which are available on the Company's website
(flagstar.com) and on the Securities and Exchange Commission's
website (sec.gov). Other than as required under United States securities laws, Flagstar
Bancorp does not undertake to update the forward-looking statements
to reflect the impact of circumstances or events that may arise
after the date of the forward-looking statements.
For further information
ANALYSTS: David Urban, Senior
Vice President, Investor Relations, (248) 312-5970
MEDIA: Susan Bergesen,
Corporate Communications, (248) 312-6237
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visit:http://www.prnewswire.com/news-releases/flagstar-to-acquire-delegated-correspondent-business-from-stearns-lending-llc-300402857.html
SOURCE Flagstar Bancorp, Inc.