Stearns Lending exits delegated correspondent lending business


SANTA ANA, Calif.–(BUSINESS WIRE)–Stearns Lending, LLCone of the leading providers of mortgage services in the wholesale, retail, strategic alliance and consumer direct industries, today announced the sale of its delegated correspondent lending business to Flagstar Bancorp, Inc. The company remains fully committed to its production in all other channels, including its Non-Delegated Correspondent product offerings.

“Over the past few years, we have successfully increased the volume of production in our other channels, reaching a maturity that allows us to meet and exceed our needs. The strategic decision to leave the delegate correspondent business is consistent with our evolution as a company,” said Brian Hale, CEO of Stearns Lending.

Thanks to its team members, the Stearns Correspondent Lending team has achieved a nationally recognized presence in the channel over the past two years, increasing production volume sevenfold from 2014 to 2016. Flagstar plans to offer positions to all Stearns employees affected by the sale.

“In seeking a buyer from our correspondent channel, we had two key objectives: First, we wanted to ensure that our network of correspondent lenders – made up of community banks, credit unions and builder-owned mortgage companies – was with a lender that would continue to serve them well,” continued Hale. “Equally important, we wanted to ensure that our employees were part of a reputable and well-run organization. Flagstar certainly met both criteria and was a model partner throughout the transition.”

Wells Fargo Securities served as financial advisor to Stearns and Sheppard, Mullin, Richter & Hampton LLP served as its legal advisor. BuckleySandler LLP served as legal counsel to Flagstar.

For more than 27 years, Stearns has helped employees, borrowers and business partners achieve their goals by successfully exceeding expectations and leading the industry with innovation and efficiency.

About Stearns Lending, LLC

Stearns Lending, LLC is a leading provider of mortgage services in the wholesale, retail and strategic alliance industries across the United States where licenses are held. The company was ranked #3 wholesale lender nationally by Inside Mortgage Finance in June 2016.

Stearns Lending is an equal housing lender and is licensed to do business in 49 states and the District of Columbia. Additionally, Stearns Lending is a HUD (United States Department of Housing and Urban Development) approved lender; a single-family issuer for Ginnie Mae (Government National Mortgage Association); an authorized seller/repairer for Fannie Mae (Federal National Mortgage Association); and an authorized seller/repairer for Freddie Mac (Federal Home Loan Mortgage Corporation). Stearns Lending is also licensed as a VA (United States Department of Veterans Affairs) lender, a USDA (United States Department of Agriculture) lender and is a licensed lender with the FHA (Federal Housing Administration). Stearns Lending, LLC is located at 4 Hutton Center Drive, 10th Floor, Santa Ana, CA 92707. Company NMLS #1854.

For more information, visit www.stearns.com.

About Flagstar

Flagstar Bancorp, Inc. (NYSE: FBC) is a $14.1 billion savings and loan holding company headquartered in Troy, Michigan. Flagstar Bank, FSB provides corporate, small business and consumer banking services through 99 branches in the state. It also offers home loans through a wholesale network of brokers and correspondents in all 50 states, as well as through 41 outlets in 21 states. Flagstar is a leading national mortgage originator and servicer, handling payments and record keeping for $80 billion in home loans representing 383,000 borrowers. For more information, visit flagstar.com.

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