Flagstar Bank has hired Kristy Fercho, former senior vice president and customer delivery executive for Fannie Mae, to lead its mortgage division. Fercho spent 15 years at Fannie Mae.
Fercho's hire comes just days after the bank announced its first offering of private-label residential mortgage bonds since the financial crisis, where it closed a $444 million securitization of RMBS backed by 668 jumbo prime (75%) and high-balancing conforming (25%) mortgages.
The bank also purchased the residential mortgage delegated correspondent lending platform of Stearns Lending in February.
Starting as vice president of human resources, Fercho was responsible for Fannie Mae's people strategy, talent acquisition and cultural transformation. In her years at Fannie Mae, she served various roles in mortgage originations, servicing, fulfillment, risk management and regulation.
Most recently, Fercho was in charge of the customer delivery strategy and business performance of all customers in the Western U.S.
"We couldn't be more pleased than to have Kristy on board to lead our mortgage business," Flagstar President and CEO Alessandro DiNello said in a press release.
"She brings a wealth of industry experience from Fannie Mae, a powerhouse in the mortgage industry and a leading source of financing for home lenders. And the timing couldn't be better with Flagstar primed to consolidate our position as the fifth largest bank originator in the country. Even better, she has worked with Flagstar since 2008 and knows our company well," he continued.
Earlier this year, Flagstar recruited another former Fannie Mae executive, Jennifer Whip, to its board of directors. Whip spent 26 years at Fannie Mae.
Flagstar's second-quarter earnings fell 13% from last year. The bank originated $32 billion in home loans in 2016.