CHICAGO, Jan. 5, 2021 /PRNewswire/ -- Guaranteed Rate, one
of America's largest retail mortgage lenders, has announced it has
entered into a definitive agreement to acquire Texas-based Stearns Holdings, LLC from funds
managed by Blackstone. A national
top 25 lender with more than $20B in
origination volume in 2020, Stearns was founded in 1989 and
operates in all 50 states through retail, joint venture,
partnership and wholesale channels. The acquisition will enable
Guaranteed Rate to bolster retail loan origination and further
scale its JV platform, while also developing new multichannel
capabilities.
The pending acquisition comes at a time of significant momentum
for Guaranteed Rate, which recorded its best production year ever
in 2020. The move builds on Guaranteed Rate's track record of
making and integrating successful acquisitions and connects
directly to its goal of becoming the country's #1 mortgage
lender.
Guaranteed Rate's experience and expertise in running joint
ventures and partnership platforms is further enhanced by Stearns
Holdings' strong presence in these channels. Stearns Holdings has
an extensive partnership model that includes real estate agent,
builder and relocation joint ventures, private label relationships
and independent mortgage bank preferred partnerships. These
partnerships include well-known brands such as SoFi and Home
Mortgage Alliance. Combining these entities with Guaranteed Rate's
existing joint ventures with Realogy and @properties will create
one of the largest partnership platforms in the country. The
acquisition also allows Guaranteed Rate to enter the
wholesale channel to complement the company's multichannel
distribution vision.
Guaranteed Rate expects the deal to yield material synergies
from stronger capital markets execution and shared services
capabilities that will drive additional efficiency, growth and
profitability.
"We're excited about bringing Stearns Holdings into the
Guaranteed Rate family," said Guaranteed Rate President and Chief
Executive Officer Victor Ciardelli.
"Pairing the incredible talent throughout Stearns' organization
with that of our existing team exemplifies the best of the best in
the mortgage business, yielding an even more powerful
platform."
Guaranteed Rate is acquiring the company from Blackstone, which will have an interest in
Guaranteed Rate and will continue to support the integration and
growth of the Guaranteed Rate vision. "We are fully behind
Victor Ciardelli and the entire
Guaranteed Rate team," said Nadim El
Gabbani, Senior Managing Director at Blackstone. "This combination creates a
powerful player in the mortgage industry, and one that we believe
is exceptionally well positioned for success over the long
term."
In the future, Guaranteed Rate plans to integrate and rebrand
Stearns Holdings' retail operation as Guaranteed Rate. The
company's wholesale and partnership businesses will remain as
stand-alone operations, with current Stearns CEO David Schneider continuing to lead those
operations.
"We're thrilled about this transaction," said Schneider.
"Guaranteed Rate is a formidable player in the mortgage industry,
and this combination will empower our employees and partners to
reach more customers, generate more business and guide more people
through the homeownership journey."
Sidley Austin LLP acted as legal advisor to Guaranteed Rate.
Houlihan Lokey acted as financial
advisor and Skadden, Arps, Slate, Meagher & Flom LLP acted as
legal advisor to Blackstone and
Stearns Holdings, LLC. The acquisition is subject to customary
closing conditions, including regulatory approvals, and is expected
to close in the first quarter of 2021. The description of the
transaction contained herein is only a summary and is qualified in
its entirety by the definitive merger agreement related to the
transaction.
About Guaranteed Rate Companies
The Guaranteed Rate Companies, which includes Guaranteed Rate,
Inc., Guaranteed Rate Affinity, LLC, and Proper Rate, LLC,
has more than 9,000 employees in over 750 offices across
the United States. Headquartered
in Chicago, Guaranteed Rate
Companies is one of the largest retail mortgage lenders in
the United States, funding over
$73 billion in 2020. Founded in 2000
and licensed in all 50 states and Washington, D.C., Guaranteed Rate Companies
has helped homeowners nationwide with home purchase loans and
refinances. The company has established itself as an industry
leader by introducing innovative technology, offering low rates and
delivering unparalleled customer service. 2017 marked the launch of
Guaranteed Rate Affinity, LLC, a mortgage origination joint venture
between Guaranteed Rate, Inc. and Realogy Holdings Corp. (NYSE:
RLGY), a global leader in residential real estate franchising
and brokerage. In 2020, the company launched Proper Rate,
LLC, a mortgage origination joint venture between Guaranteed Rate,
Inc. and @properties, one of the nation's largest residential
brokerage firms. Collectively, the Guaranteed Rate Companies
have earned honors and awards including: Top Lender for Online
Service for 2018 by U.S. News & World Report; Best
Mortgage Lender for Online Loans and Best Mortgage Lender for
Refinancing by NerdWallet for
2021; HousingWire's 2020 Tech100 award for the
company's industry-leading
FlashClose SM technology; No. 3
ranking in Scotsman Guide's Top Retail Mortgage Lenders
2019; Chicago Agent
Magazine's Lender of the Year for five consecutive
years; Chicago Tribune's Top Workplaces list for seven
consecutive years. Visit rate.com for more
information.
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SOURCE Guaranteed Rate