Stonegate Mortgage Corporation and Bank of Virginia Create a Residential
Mortgage Loan Participation Program
Stonegate Mortgage Sharpens Strategic Focus on Providing Banks with Investment
Opportunities in Residential Mortgages
INDIANAPOLIS -- February 5, 2013
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
Sloane & Company (on behalf of Stonegate Mortgage Corporation)
Whit Clay, 212-446-1864
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