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Stonegate Emerges from Acquisitions as Billion Dollar Player

2 acquisitions completed


Dec. 20, 2013

By Mortgage Daily staff


Stonegate Mortgage Corp. has completed its second acquisition since executing an initial public offering. Based on year-to-date originations from the combined units, monthly production exceeded $1 billion.

The IPO was completed by the Indianapolis-based company in October. The transaction was expected to generate around $136 million in capital.

Earlier this month, Stonegate put its new capital to work by closing on the purchase of Nationstar Mortgage Holdings Inc.'s wholesale lending division. That deal also included 200 employees and certain distributed retail assets.

On Friday, Stonegate disclosed that it has closed on the acquisition of Crossline Capital Inc.

The Crossline deal was originally announced last month.

"Stonegate is committed to expanding our retail mortgage origination footprint through strategic acquisitions that will enable us to provide services directly to the consumer," Stonegate Mortgage Chief Executive Officer Jim Cutillo said in the statement. "Crossline Capital's call center and retail branch network is in well-established markets with limited overlap to Stonegate's retail locations, so this is highly complementary to our existing operations. As part of the acquisition, Stonegate has gained a team of leaders from Crossline with real in-market knowledge and relationships."

Lake Forest, Calif.-based Crossline was acquired from its CEO and sole shareholder, Timothy R. Elkins. It is reportedly licensed in 20 states and approved as a Fannie Mae seller-servicer.

Elkins noted in the announcement that Crossline had already been financing loans through Stonegate-subsidiary NattyMac.

Originations at Crossline were $572 million during 2012 and totaled $374 million during the first nine months of 2013.

Including $4.8 billion in production generated year-to-date Sept. 30 through Nationstar's wholesale unit and $6.3 billion funded by Stonegate, itself, the combined organization -- pre- and post-acquisition -- originated a total of $11.5 billion from Jan. 1 through Sept. 30.

Crossline will be operated as a wholly-owned subsidiary of Stonegate.


Related:
Stonegate Making Another Acquisition (Nov. 21, 2013)
Stonegate Mortgage Corp. is putting its newly acquired capital to work with another agreement reached to buy a mortgage production business.

Stonegate Mortgage profile

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