A bigger market share influenced New Penn Financial LLC’s decision to make an acquisition of a mortgage firm with a network of referral sources for home purchases.
The Plymouth Meeting, Pa.-based mortgage banker said Wednesday that it is acquiring 30-year-old Shelter Mortgage Co.
The deal will double the size of New Penn’s retail lending channel and also increase its share of the mortgage market.
Shelter is a full-service mortgage lender with a focus on purchase financing, according to the news release. It reports more than 120 loan originators and 30 licensed states.
It reportedly operates a partnership-based model and develops relationships with Realtors, builders and relocation companies.
Shelter Mortgage Chief Executive Officer Marc McManus explained in the statement that the deal gives his company access to a “diverse mix of agency and non-agency products.”
New Penn said that McManus will retain a leadership role in the new organization.
While New Penn didn’t identify the seller, CIVC Partners L.P. announced in January 2013 that it acquired Milwaukee-based Shelter Mortgage from Guaranty Bank.
Once the New Penn transaction is completed, Shelter and its subsidiaries will become a wholly owned subsidiary of New Penn and its parent, Shellpoint Partners LLC.
