Guaranteed Rate is going to acquire Texas-based Stearns Holdings.
A national top 25 lender with more than $20B in origination volume in 2020, Stearns was founded in 1989 and operates in all 50 states through retail, joint venture, partnership and wholesale channels. The acquisition will enable Guaranteed Rate to bolster retail loan origination and further scale its JV platform, while also developing new multichannel capabilities, the company said in a release.
The acquisition also allows Guaranteed Rate to enter the wholesale channel to complement the company's multichannel distribution vision.
The pending acquisition comes at a time of significant momentum for Guaranteed Rate, which recorded its best production year ever in 2020. The move builds on Guaranteed Rate's track record of making and integrating successful acquisitions and connects directly to its goal of becoming the country's #1 mortgage lender.
Guaranteed Rate is acquiring the company from Blackstone.
“We are fully behind Victor Ciardelli and the entire Guaranteed Rate team,” said Nadim El Gabbani, Senior Managing Director at Blackstone. “This combination creates a powerful player in the mortgage industry, and one that we believe is exceptionally well positioned for success over the long term.”
Stearns Holdings has an extensive partnership model that includes real estate agent, builder and relocation joint ventures, private label relationships and independent mortgage bank preferred partnerships. These partnerships include well-known brands such as SoFi and Home Mortgage Alliance. Combining these entities with Guaranteed Rate's existing joint ventures with Realogy and @properties will create one of the largest partnership platforms in the country.
Terms of the acquisition were not disclosed.
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