Commerce Home Mortgage and its parent company, The Capital Corps, are acquiring Oregon-based retail mortgage banking company LoanStar Home Loans as a move to expand access to capital throughout the Northwest and Texas.
LoanStar's loan production offices, located in Oregon, Washington, California, Colorado, Texas, Utah and Hawaii, will continue conducting business under the LoanStar name as a division of Commerce.
"I am happy that Commerce is expanding throughout the Northwest and Texas — key markets that are underserved by banks and in need of greater access to capital. Our membership is eager to give credit to the American dream by increasing access to capital in these important regions," Faith Bautista, National Diversity Coalition president, who serves as chair of Commerce's community advisory board, said in a press release.
"We look forward to connecting Commerce with banking partners and others who can help provide the financing and develop the products needed to better serve these underbanked populations," she said.
The acquisition marks significant progress toward Commerce's goal of expanding access to capital in the Northwest and Texas regions, according to Steven Sugarman, executive chairman of The Capital Corps and Commerce.
"I am thrilled to partner with LoanStar and its talented professionals for this strategic transaction. Our combined organization will have a strong balance sheet, meaningful scale, and the benefits associated with our certification as a [community development financial institution] by the United States Department of Treasury," said Sugarman.
"As Commerce rolls out its proprietary, nontraditional prime mortgage products later this year, our retail loan officers will have a compelling opportunity to meaningfully grow their originations. Commerce's expansion throughout the Northwest and Texas has been a top priority," he continued.
The Capital Corps plans to launch a lending program in the second half of the year, which will leverage alternative ability-to-repay methodology.