Independent mortgage banks seeking to expand their loan production or servicing portfolios may find a new source of funding and private equity capital through Steadfast Capital.
The newly launched investment firm wants to provide a bridge between “deserving” mortgage bankers and the investment community, according to Steadfast Capital president and chief executive David Fleig.
“For the first time in 20 years it makes economic sense for mortgage bankers to buy and retain
Steadfast Capital will provide mezzanine financing for MSRs, which is subordinated to the warehouse lender and secured by the servicing rights. This type of financing has been in short supply since Taylor, Bean & Whitaker Mortgage Corp. blew up in 2009.
The Sugar Land, Texas-based investment firm will also take an equity stake in mortgage banking companies, including a controlling interest in some cases.
Fleig has spent nearly 30 years in the mortgage business and was the CEO of Access Lending Corp., a warehouse lending firm that was sold to Franklin Bank in 2007. Fleig and his long-time partner John Sullivan have focused on mergers and acquisitions and MSR analytics in recent years.
Their new partner Steve Hinckley is a former mortgage banking executive who has been in the private equity business for the past 15 years. Both Fleig and Hinckley have experience in raising private capital for companies.
“We started Steadfast because we have a strong conviction there is a tremendous amount of opportunity in the mortgage space right now,” Fleig said.
