IBJNews

Local mortgage firm lands $25M in private equity

Back to TopCommentsE-mailPrintBookmark and Share

Indianapolis-based Stonegate Mortgage Corp. has received funding from Long Ridge Equity Partners, a private-equity firm, to help it expand in mortgage origination and servicing, the company said Monday.

The lender will use the money partly to continue retaining mortgage-servicing rights generated by its lending, Stonegate CEO Jim Cutillo said. The company may also buy existing servicing contracts from banks and build a portfolio of so-called jumbo loans, he said. Jumbo mortgages are larger than allowed in government-supported programs, currently as much as $729,750 for single-family properties in certain areas.

The investment was $25 million, according to Whit Clay, a spokesman for Stonegate. Long Ridge sees an opportunity to profit through a firm able to acquire servicing rights because of the low interest rates and high credit quality of new loans and recent retreats from the business by several large banks, said Kevin Bhatt, a partner at the New York-based firm.

“For us, a flat overall market is actually OK because there’s more market share available,” Cutillo said.

Stonegate lends directly to consumers, as well as through brokers and correspondents. It originated about $1 billion of mortgages last year and expects volume may total about $2.5 billion this year and as much as $5 billion in 2013, according to Cutillo. It owns about $1.5 billion of servicing rights, he said.

Stonegate will appoint Richard Mirro, former chairman and CEO of North American Mortgage Corp., to its board as part of the deal. Mirro is a member of Long Ridge’s financial-services advisory board.

Stonegate was founded in 2005 and was based in Fishers before moving its headquarters last year to The Precedent office park near Keystone Avenue and East 96th Street in Indianapolis, to accommodate a planned expansion.

In December 2010, Stonegate pledged to hire 300 workers by 2015 and expects to add 100 of those by the end of this year, CEO Jim Cutillo said. With $15.4 million in revenue at the end of 2010, the firm was the second-fastest growing company in the Indianapolis area, according to IBJ statistics. Its grew revenue 491 percent from the previous three years.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Liberals do not understand that marriage is not about a law or a right ... it is a rite of religous faith. Liberals want "legal" recognition of their homosexual relationship ... which is OK by me ... but it will never be classified as a marriage because marriage is a relationship between a man and a woman. You can gain / obtain legal recognition / status ... but most people will not acknowledge that 2 people of the same sex are married. It's not really possible as long as marriage is defined as one man and one woman.

  2. That second phrase, "...nor make or enforce any law which shall abridge the privileges or immunitites of citizens..." is the one. If you can't understand that you lack a fundamental understanding of the Constitution and I can't help you. You're blind with prejudice.

  3. Why do you conservatives always go to the marrying father/daughter, man/animal thing? And why should I keep my sexuality to myself? I see straights kissy facing in public all the time.

  4. I just read the XIV Amendment ... I read where no State shall deprive any person of life, liberty, or property ... nor make or enforce any law which shall abridge the privileges or immunitites of citizens ... I didn't see anything in it regarding the re-definition of marriage.

  5. I worked for Community Health Network and the reason that senior leadership left is because they were not in agreement with the way the hospital was being ran, how employees were being treated, and most of all how the focus on patient care was nothing more than a poster to stand behind. Hiring these analyst to come out and tell people who have done the job for years that it is all being done wrong now...hint, hint, get rid of employees by calling it "restructuring" is a cheap and easy way out of taking ownership. Indiana is an "at-will" state, so there doesn't have to be a "reason" for dismissal of employment. I have seen former employees that went through this process lose their homes, cars, faith...it is very disturbing. The patient's as well have seen less than disireable care. It all comes full circle.

ADVERTISEMENT