Stearns Lending

Stearns Lending, LLC is one of the American wholesale, retail and correspondent lender. Stearns is one of the largest mortgage lenders in the US[2][3] As of 2013, Stearns was the fifth-largest privately held lender nationwide.[4]

Stearns Lending, LLC
TypeSubsidiary
IndustryFinancial Services
Founded1989
FounderGlenn Stearns
HeadquartersLewisville, Texas,
U.S.
Key people
David Schneider, CEO
Steve Smith, President & CFO
Revenue$521.7 million (2014[1])
Number of employees
1,700 (2015[1])
Websitewww.stearns.com

Overview

Glenn Stearns founded the company in 1989.[1][4] He was chief executive officer (CEO) from its founding until May 2012 when Stearns named Brian Hale, former president and national production executive of MetLife Home Loans, as his successor.[5] On May 15, 2017, David Schneider joined Stearns Lending as CEO and a member of its board of managers.[6]

Stearns was featured on the Inc. 5000 list of fastest growing private companies in America in 2013, 2014 and 2015.[7][8] In August 2015, Stearns' parent company, Stearns Holdings, LLC, was purchased by The Blackstone Group.[1][7] The American Bankers Association added Stearns Lending to its list of endorsed lending services through the Corporation for American Banking in May 2016.[9]

As of January 2021, Chicago-based lender Guaranteed Rate is acquiring Stearns for an undisclosed sum.[10]

2019 Bankruptcy filing

On July 9, 2019, after Stearns' business did poorly in the rising interest rate environment of 2017–2018, Stearns Lending filed for Chapter 11 bankruptcy.[11] The filing was precipitated by failure to come to an agreement on restructuring with Pacific Investment Management Company (PIMCO), which owns 67% of the $183 million in senior secured notes owed by Stearns.[11] On September 11, 2019, Stearns announced that it had reached an agreement with its largest noteholders under which the noteholders will support a plan of reorganization.[12]2021, Stearns folded into Guaranteed Rate.[13]

References
  1. Jane Yu (August 21, 2015). "Stearns to Sell Majority Stake to Blackstone". Orange County Business Journal. Retrieved September 22, 2016.
  2. James Rufus Koren (November 30, 2015). "After subprime collapse, nonbank lenders again dominate riskier mortgages". Los Angeles Times. Retrieved September 22, 2016.
  3. "Fast Growing Lender Adding Correspondent Program". Mortgage Stats. March 18, 2010. Retrieved September 22, 2016.
  4. Bill Quinnan (January 21, 2013). "Hard Times Yield Opportunities for Stearns Lending". OC Register. Retrieved September 22, 2016.
  5. Jane Yu (May 7, 2012). "Hale New CEO for Stearns Lending". Orange County Business Journal. Retrieved September 22, 2016.
  6. "Stearns Lending, LLC Announces CEO Transition". www.businesswire.com. 2017-05-15. Retrieved 2019-05-02.
  7. "Will Blackstone's (BX) Deal with Stearns Boost Growth". Zacks. August 24, 2015. Retrieved September 22, 2016.
  8. "Stearns Lending". Inc. Retrieved September 22, 2016.
  9. "ABA Endorses Stearns Lending's Fulfillment, Correspondent Services". ABA Banking Journal. May 9, 2016. Retrieved September 22, 2016.
  10. Kleimann, James (January 5, 2021). "Guaranteed Rate to acquire Stearns Lending".
  11. "Stearns Lending files Chapter 11 bankruptcy after mortgage interest rate increases". USA Today. July 9, 2019. Retrieved August 3, 2019.
  12. "Restructuring Information". stearnsrestructuring.com/. Retrieved September 21, 2019.
  13. "Guaranteed Rate closes Stearns wholesale channel". HousingWire. 2022-01-12. Retrieved 2022-05-07.


This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.