In a move that will significantly expand its share of the mortgage market and double the size of its retail channel, New Penn Financial, a division of Shellpoint Partners, has acquired Shelter Mortgage Co., a full-service mortgage lender headquartered in Milwaukee, Wis., for an undisclosed sum.
Upon completion of the acquisition, Shelter Mortgage and its subsidiaries will become a wholly owned subsidiary of New Penn Financial/Shellpoint Partners, the company says in a release.
‘The acquisition of Shelter Mortgage reinforces our position as a leader in the mortgage lending market,’ says Jerry Schiano, president and CEO of New Penn Financial. ‘Their long history of building significant relationships with referral sources makes Shelter Mortgage a perfect complement to New Penn's focus, financial strength and diversity of products.’
‘We are extremely excited to become part of the New Penn family of companies and recognize the immediate value the relationship will bring, beginning with the diverse mix of Agency and Non-Agency products we'll now be able to offer,’ says Marc McManus, CEO of Shelter Mortgage, who will continue his leadership role in the new organization.
‘Shelter Mortgage represents a strategic addition to our comprehensive family of mortgage-based companies,’ adds Bruce Williams, Co-CEO of Shellpoint Partners LLC. ‘This partnership immediately adds significant scale to our retail platform and further distinguishes our position as a leader in the industry.’
In August, New Penn Financial announced that it was moving into non-qualified mortgage lending with the launch of Home Buyer Power, a new product that opens up lending opportunities for buyers who may not be the right fit for qualified mortgage (QM) loans.
The launch makes New Penn one of the first major non-bank lenders to enter this specialized market, which has emerged since stringent new QM requirements went into effect in January 2014.
‘Home Buyer Power creates mortgage lending opportunities for customers with strong credit who fall outside the very specific criteria required for QM loans,’ says Brian Simon of New Penn Financial. ‘These are solid buyers with strong income who may have a high debt-to-income ratio.’
The company says although it is loosening its credit standards in going after the underserved market, that doesn't mean borrowers are ‘unvetted’ or ‘underqualified.’ To the contrary, they will need to provide full income documentation, demonstrate strong credit scores, and meet additional guidelines that indicate their ability to repay.
Home Buyer Power features an interest-only option, and buyers with debt-to-income ratios as high as 55% at 80% loan-to-value may qualify for loans.