Mortgage Daily Logo

Merger Creates Portfolio Lender

Mortgage News

The acquisition of a billion-dollar producer will create a company that plans to make portfolio loans. On the menu are jumbo mortgages and investor loans.

In 1999, Wilmington Finance Inc. was launched by subprime veteran Jerry Schiano. By 2003, AIG subsidiary American General Finance Inc. acquired Wilmington. The unit would eventually employ 2,000 people and originate $15 billion.

Schiano wound up staying on board until May 2006, while Wilmington ended mortgage banking originations in June 2008.

By May 2008, Schiano had already launched another venture: New Penn Financial LLC. The company in initially focused on government business, while financial institutions were being targeted for affinity relationships.

Last year, Plymouth Meeting, Pa.-based New Penn originated $1.2 billion. Headcount at New Penn stands at 400 employees, and branch count is 20 offices.

New Penn acquired Stenton Mortgage in June 2008 and Universal Trust in September 2008.

Now, the three-year-old company has been acquired itself.

A news release Thursday indicated that Shellpoint Partners LLC completed its acquisition of New Penn. Terms of the deal weren’t disclosed.

Shellpoint was created as a venture between New Penn management and Ranieri Partners — a company founded by mortgage-backed securities legend Lewis S. Ranieri.

“In addition to its current product line, New Penn will expand mortgage originations to creditworthy borrowers who do not fit the government agencies’ underwriting criteria — for example, those seeking jumbo loans or second homebuyers and investors,” the statement said.

Shellpoint Co-Chief Executive Officer Bruce Williams noted in the news release that the private sector will need to step up its role in mortgage originations as the housing market recovers. Williams explained that many creditworthy borrowers don’t qualify for conforming programs, and a “significant opportunity” exists for “well capitalized specialty finance” firms that are not burdened with legacy loan portfolios.

Loans originated by New Penn will either be securitized or held in Shellpoint’s portfolio. By holding some of the loans as investments, “skin-in-the-game” requirements are satisfied, according to the release.

Schiano will continue as CEO of New Penn.

“Shellpoint’s capital and ability to develop proprietary products will greatly expand the options that we can bring to our borrowers in all of our business channels,” Schiano said in the statement.

Related Posts

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

There is No Such Thing as a Free House …

Over the past several years, those who service loans in the State of Washington(1) have seen a dramatic rise in the number of lawsuits in which delinquent borrowers seek to quiet title to their homes on the grounds that lenders are barred from foreclosing based on...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

The Mortgage Graveyard 2018 Archives

The Mortgage Graveyard 2018 Archives Failed, Struggling and Acquired Mortgage-Related Companies Non-Bank Closures 3 Bank Failures (FDIC) 0 Credit Union Failures 0 Total Mortgage-Related Failures 3  

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

MBS Statistics

MBS Statistics Non-Agency Issuance 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 Private Label RMBS Issuance (S&P) $80 billion to $100 billion (est) $70 billion $34...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Sample E-Mail

Sample E-Mail   Covering the Real Estate Finance Since 1999  Mortgage Industry News free news content | view headlines online  Advertorial Text Ad This ad includes a linked bold headline of up to 50 characters and up to 100 words of text. The ad can be...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI