Flagstar Bancorp Inc. has picked up some of the employees impacted by Capital One Financial Corp.’s recent decision to get out of home lending.
Back in November, Capital One announced plans to exit its mortgage business, noting that
it’s been too challenging to stay competitive and turn a profit.
The decision was expected to impact approximately 750 home loan employees located in Plano, Texas, and 155 people in Minnesota and New York.
But some of the affected Texas workers have found a new home.
On Thursday,
Troy, Michigan-based Flagstar announced that it has picked up a consumer-direct mortgage team from Capital One.
According to the news release, it has hired 21 people, including Rocky Stubbs, who has been appointed senior vice president and director of consumer direct lending.
Stubbs, who was the
head of consumer direct and digital mortgage for Capital One, will lead Flagstar’s Michigan-based direct-to-consumer group in addition to the former 20 Dallas-based Capital One recruits.
With the hiring of the seasoned team — Flagstar diversifies its origination sources, strengthens its mortgage business and positions itself
for continued growth in purchase mortgage market.
“Our Michigan team did a great job last year shifting to a purchase market, and the Capital One team will provide additional capacity to strengthen and scale our platform and take advantage of market opportunities,” Flagstar President of Mortgage Kristy Fercho said in the statement. “The combined team will enhance our capabilities in servicing recapture, digital acquisition and home equity.”
