An upcoming acquisition by Flagstar Bancorp Inc. will expand its retail lending business on the West Coast and boost its originations by nearly 10 percent.
The Troy, Michigan-based bank-holding company previously reported more than $32 billion in residential loan originations for all of last year.
Mortgage production was generated from more than 40 loan origination centers and bank branches that are primarily concentrated in the Midwest.
But an agreement announced
late Monday will significantly increase its branch count, raise its loan volume and expand its West Coast presence.
According to the news release, an agreement was reached to acquire
certain assets of Opes Advisors Inc.
The Cupertino, California-based organization
generates business from 39 retail branches in California, Oregon and Washington.
“The footprint is strategically focused in markets with strong demographics, resulting in high credit quality originations,” yesterday’s statement said.
During 2016, Opes’ 160 mortgage advisors generated around $3 billion in loan production. Originations are mostly purchase financing.
Opes Advisors will be operated as a
separate division with the Flagstar brand.
“They’re a strong fit with our strategic goal of growing our retail mortgage business and a good fit culturally,” Flagstar President and Chief Executive Officer Alessandro P. DiNello said in the news release. “We like the deep mortgage experience of their management team; we like their strong purchase mortgage origination focus; and we like their long track record of success.”
Keefe, Bruyette & Woods served as financial advisor to Opes Advisors, while Sheppard, Mullin, Richter & Hampton LLP served as its legal counsel. BuckleySandler LLP served as legal counsel to Flagstar.
Flagstar didn’t disclose terms of the transaction, which is expected to close within 30 days.
