Stonegate Mortgage to Acquire Nationstar’s Wholesale Lending Channel

  Stonegate Mortgage to Acquire Nationstar’s Wholesale Lending Channel

    Strategic Acquisition Includes Certain Distributed Retail Assets; Deal
    Accelerates Geographic Expansion and Diversifies Origination Business

Business Wire

INDIANAPOLIS -- November 7, 2013

Stonegate (NYSE:SGM), a leading non-bank mortgage company focused on
originating, financing and servicing U.S. residential mortgage loans,
announced today that it has entered into a binding letter of intent to acquire
the wholesale lending channel and certain distributed retail assets of
Nationstar Mortgage Holdings Inc. (NYSE:NSM). For the first six months of this
year, Nationstar’s wholesale lending channel originated $3.26 billion in
mortgages. Pursuant to the terms of the letter of intent, Stonegate agreed to
purchase the assets and offer employment to certain employees associated with
these businesses. The purchase price will be the net book value of the fixed
assets acquired by Stonegate Mortgage.

For Stonegate Mortgage, the acquisition complements the company’s existing
wholesale and retail channels and accelerates its geographic expansion.

“Since our founding in 2005, Stonegate has focused on building a fully
integrated and diversified mortgage banking platform. This acquisition enables
us to further drive retail originations and serve an even larger group of
mortgage brokers through our wholesale channel”, said Jim Cutillo, Chief
Executive Officer of Stonegate Mortgage. As part of the acquisition, Stonegate
will gain a team of leaders from Nationstar. “We are excited to have such an
outstanding group joining our team to strengthen what I believe is the best
non-bank mortgage company in the industry today. Having completed our IPO in
October, we are well-positioned to execute our business plan. This is one of a
number of key initiatives that will help drive near and long-term shareholder
value,” continued Cutillo.

“We appreciate the efforts of the team in the wholesale channel and are
pleased to have reached agreement on this transaction, which fits well within
Stonegate’s focus on branch geographic expansion,” said Jay Bray, CEO of
Nationstar Mortgage. “The transaction also fits well within Nationstar’s
strategic focus on servicing, Solutionstar, consumer direct originations and
correspondent.”

Based in Lewisville, Texas, Nationstar offers servicing, origination, and real
estate services to financial institutions and consumers. Nationstar is one of
the largest and fastest growing servicers in the United States and operates an
integrated loan origination business that mitigates servicing portfolio
run-off and improves credit performance for loan investors. Its Solutionstar
business unit offers asset management, settlement, and processing services.

About Stonegate Mortgage Corporation

Founded in 2005, Stonegate Mortgage Corporation (NYSE:SGM) is a leading,
non-bank, integrated mortgage company that originates, finances and services
agency and non-agency residential mortgages through its network of retail
offices and approved third party originators. Stonegate Mortgage also provides
financing through its fully integrated warehouse lending platform, NattyMac.
Stonegate Mortgage’s operational excellence, financial strength, dedication to
customer service and commitment to technology has positioned the firm as a
leading provider in the emerging housing finance market.

For more information on Stonegate Mortgage Corporation, please visit
stonegatemtg.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of
the safe harbor provisions of the United States Private Securities Litigation
Reform Act of 1995. Such statements may include, but are not limited to,
statements about the benefits of this proposed transaction, including future
financial and operating results, Stonegate’s plans, objectives, expectations
and intentions and other statements that are not historical facts. Such
statements are based upon the current beliefs and expectations of the parties
and are subject to significant risks and uncertainties. Actual results may
differ from those set forth in the forward-looking statements.

Risks and uncertainties include uncertainties as to the purchase price to be
paid at closing; the timing of the closing of the transaction; the possibility
that the transaction may not close, including, but not limited to, due to the
failure to satisfy the closing conditions; the effects of disruption from the
transaction making it more difficult to maintain business and operational
relationships; as well as the risk of new and changing regulation and policies
in the U.S. Additional factors that could cause results to differ materially
from those described in the forward-looking statements can be found in
Stonegate’s public disclosure filings with the Securities and Exchange
Commission (the “SEC”). Stonegate disclaims any intent or obligation to update
any forward-looking statements as a result of developments occurring after
this press release or otherwise. Copies of Stonegate’s SEC filings are
available at the SEC’s website at www.sec.gov.

Contact:

Media:
Sloane & Company (on behalf of Stonegate Mortgage Corporation)
Whit Clay, 212-446-1864
wclay@sloanepr.com
or
Investor:
Stonegate Mortgage Corporation
Mike McFadden, 317-663-5904
michael.mcfadden@stonegatemtg.com
 
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