Investment will enable Stonegate to grow its portfolio of mortgage servicing rights and expand production through its correspondent, wholesale, and retail lending channels
Stonegate appoints Rich Mirro, former Chairman and CEO of North American Mortgage to its Board
Stonegate Mortgage, one of the nation’s largest and fastest-growing independently-owned mortgage lenders, announced today that it has recently completed a private equity transaction with Long Ridge Equity Partners, a New York-based private investment firm.
Stonegate plans to use the capital to expand its portfolio of mortgage servicing rights and continue its growth in the correspondent and wholesale loan origination channels. The additional capital will also allow Stonegate to pursue expansion of its retail branch network through select acquisitions.
“We are well-positioned to act as an aggregator for depositories and correspondents who are selling loans on a servicing released basis into the secondary market; we intend to become an industry leader in this space.” said Jim Cutillo, CEO of Stonegate. “In addition, we have the resources to acquire small to mid-size mortgage bankers who need capital and warehouse lines to grow their businesses. We are confident that we can execute our plan, while maintaining our commitment to providing an outstanding experience for all of our clients – both institutional and retail.”
“We see a clear opportunity for an independent, non-bank, mortgage lender and servicer like Stonegate to establish itself as a leading player in the industry,” said Kevin Bhatt, Partner at Long Ridge Equity Partners. “Since founding Stonegate in 2005, Jim Cutillo has proven to be an exceptional leader and has built a team and platform capable of capitalizing on the current dislocation in the mortgage industry.”
The company is also actively pursuing the purchase of existing mortgage servicing rights from banks who face balance sheet and regulatory constraints and later this year plans to launch a non-agency jumbo program.
Under terms of the agreement, Stonegate has added Rich Mirro to its Board of Directors. Mr. Mirro is the former Chairman and CEO of North American Mortgage, which was the nation’s 10th largest lender under his leadership. Previously, Rich served as Chairman and CEO of Fleet Mortgage and COO of Chase Manhattan Mortgage.
“We are excited to have Rich on our team, his experience and insight will be invaluable as we pursue our strategic growth plan,” said Cutillo.
Jim Brown and Kevin Bhatt of Long Ridge Equity Partners will also join Stonegate’s Board in connection with the transaction.