Stonegate Mortgage, one of the nation’s largest and fastest growing independently-owned mortgage lenders and servicers, announced today that it has entered into a residential mortgage loan participation agreement with the Bank of Virginia (Nasdaq: BOVA). Under the terms of the agreement, Bank of Virginia will have a $30 million participation in Stonegate Mortgage’s residential mortgage loans. Bank of Virginia is tapping into Stonegate Mortgage’s expertise in managing warehouse lending programs for financial institutions by identifying low-risk, high-performing mortgage loans and packaging and structuring the loans for investment with GSE’s including Fannie Mae, Freddie Mac and Ginnie Mae.
“We’ve been looking carefully for high quality investment opportunities in residential mortgages that can provide attractive returns within our risk parameters,” said Richard Dickinson, President of Bank of Virginia. “Stonegate Mortgage has the financial resources, expertise, technology and commitment to quality that will enable our bank to deploy capital in to the residential real estate market in an effective manner.”
“Our focus is on providing financial institutions with access to a range of solutions in the residential real estate market whether that is acquiring mortgage portfolios for servicing, providing liquidity or managing investment portfolios in the residential mortgage market,” said Jim Cutillo, CEO of Stonegate Mortgage. “We believe that the housing market is in need of capital and solutions and we are identifying opportunities to work with regional and community banks and mortgage lenders and brokers to address their needs.”
The announcement builds on Stonegate Mortgage’s strategy of developing its financial institutions channel to provide residential real estate finance solutions to regional and community banks and mortgage lenders and brokers. The company is using its capital, expertise, technology and financial acumen to identify and acquire low-risk, high-performing residential real estate mortgage assets and to package them for investment.
Stonegate Mortgage is building a team of executives with deep experience working with financial institutions and developing capital markets and investment expertise that establishes a full-service mortgage offering which includes origination, investment and servicing of both agency and non-agency mortgage servicing rights and their associated securities. The firm recently added Eric Scholtz as Executive Vice President of Structured Finance. Mr. Scholtz is a capital markets executive with over 20 years experience in the structuring, pricing and trading of mortgage and asset-backed securities including as Executive Vice President of Capital Markets and Senior Vice President, Head of Trading at GMAC RFC, where he was responsible for the acquisition and ultimate sale/securitization of $150 billion annual volume in agency and non-agency mortgage loans.
In September 2012, Stonegate Mortgage acquired NattyMac, a leading warehouse lender, from Guggenheim Partners. By adding the NattyMac warehouse platform and its processes, the company has created an integrated warehouse and loan sale solution for its clients and has expanded the platform by offering servicing flow transactions for Fannie, Freddie and Ginnie Mae eligible loans. Stonegate Mortgage followed that announcement in November with an agreement with Community Bank Mortgage LLC, a subsidiary of the American Bankers Association, to become its newest secondary market investor enabling Community Bank Mortgage LLC owner banks to sell loans on a “servicing-released” basis to Stonegate Mortgage with competitive pricing as well as access to the company’s full line of mortgage finance products.
Stonegate Mortgage announced its plans to expand its third party originations and servicing portfolio and build its financial institutions channel after completing a private equity transaction with Long Ridge Equity Partners, a New York-based private investment firm in March 2012.
About Stonegate Mortgage Corporation
Stonegate Mortgage Corporation is one of the largest and fastest growing independent, non-bank, mortgage lenders and servicers in the U.S., according to Inc. Magazine. Backed by Long Ridge Equity Partners, a New York based private investment firm, Stonegate Mortgage originates, acquires and retains mortgage servicing rights through a network of retail branches and approved third party originators, which include depository institutions, mortgage bankers and mortgage brokers.
For more information on Stonegate Mortgage Corporation, please visit www.stonegatemtg.com.
Whit Clay, 212-446-1864
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