Stonegate Mortgage Acquires NattyMac from Guggenheim Partners

INDIANAPOLIS--(BUSINESS WIRE)--Stonegate Mortgage, one of the nation’s largest and fastest growing independently-owned mortgage lenders and servicers, announced today that it has acquired NattyMac, a leading warehouse lender, from Guggenheim Partners. The financial terms of the deal were not disclosed.

“NattyMac has been providing warehouse financing to independent mortgage bankers since 2004 and unlike many of the bank owned warehouse lenders, they continued to do so during the credit crisis”

“NattyMac has been providing warehouse financing to independent mortgage bankers since 2004 and unlike many of the bank owned warehouse lenders, they continued to do so during the credit crisis,” said Jim Cutillo, CEO of Stonegate Mortgage. “We intend to ensure that the independent mortgage banker has access not only to warehouse financing, but liquidity for their agency loans.”

In March 2012, Stonegate announced plans to expand its third party originations and servicing portfolio after completing a private equity transaction with Long Ridge Equity Partners, a New York-based private investment firm. Stonegate’s revenues year-to-date have increased 340 percent over 2011 and its servicing portfolio also saw significant growth increasing 235 percent, led by its correspondent channel which has grown 519 percent over 2011. With the NattyMac acquisition, Stonegate has the opportunity to build on this momentum, adding the NattyMac warehouse platform and its processes to create an integrated warehouse and loan sale solution for its clients. Stonegate also intends to expand the platform by offering servicing flow transactions for Fannie, Freddie and Ginnie Mae eligible loans.

As part of the agreement, John VanDolah, chief operating officer for NattyMac and his team of 20 employees will join Stonegate to maintain and enhance the leadership and management of the NattyMac business in its St. Petersburg, Fla. office. In addition, Stonegate will be opening a regional operations center in the NattyMac offices to handle the additional wholesale and correspondent volume.

Commenting on the agreement Mr. VanDolah said, “Warehouse lending involves more than just funding loans. As a part of Stonegate Mortgage, we will now be able to offer NattyMac and Stonegate’s clients an integrated solution which will provide not only liquidity for agency eligible loans but also reduced compliance, collateral and operating risk. We have an immense respect for Stonegate and the business built by Jim Cutillo and his team. In a challenging era for the mortgage finance business, Stonegate has focused on responsibility, accountability and superior customer experiences not just in their retail business, but in their institutional business as well. This is an exciting opportunity for the team at NattyMac to join Stonegate and be a part of their growth and development.”

About NattyMac

Founded in 2004, NattyMac is an independent mortgage warehouse lender focused on financing prime mortgage collateral such as agency-eligible and government insured or guaranteed loans. NattyMac is based out of St. Petersburg, Fla. and provides liquidity to independent mortgage bankers via a warehouse program. In 2008 the company provided additional liquidity by arranging a financing program with Fannie Mae for sellers and servicers. Prior to the acquisition by Stonegate, NattyMac was owned by Guggenheim Partners, a privately held, global diversified financial services firm with more than $160 billion in assets under supervision.

About Stonegate Mortgage Corporation

Stonegate Mortgage Corporation is one of the largest and fastest growing mortgage lenders and servicers in the U.S. Backed by Long Ridge Equity Partners, a New York based private investment firm, Stonegate acquires loans and retains the mortgage servicing rights on a retail, wholesale and correspondent basis through a network of retail branches and approved third party originators.

For more information on Stonegate Mortgage Corporation, please visit www.stonegatemtg.com.