Indianapolis-based Stonegate Mortgage has announced that it is creating a financial institutions channel that will focus on providing depository institutions with access to the secondary mortgage market on a correspondent and wholesale basis.
‘We want to provide our financial institution clients liquidity for their mortgage assets,’ says Jim Cutillo, CEO of Stonegate Mortgage. ‘As a private conduit, we can provide access to the secondary market on a servicing released basis and we can help them manage their existing servicing portfolio in a less capital-intensive way. We will bring our expertise and our dedication to service that we use on a day-to-day basis with our homeowners to financial institutions, providing capital and liquidity that fills a critical void in the marketplace.’
According to the company, Stonegate recently completed a private equity transaction with Long Ridge Equity Partners, a New York-based private investment firm, and 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 new division will be run by Doug Miller, a former vice president at GMAC Bank/Ally Bank in Memphis, Tenn., and a 40-year veteran of mortgage banking.