Shellpoint Partners LLC, a joint venture between company management and Ranieri Partners, has purchased New Penn Financial, an originator of FHA/VA and conforming loans, based in Plymouth Meeting, Pa.
New Penn is headed by Jerry Schiano, the former president of Wilmington Finance (which was sold to American International Group and contributed to its problems) and a former senior vice president at ContiMortgage. Schiano will become a part of Shellpoint's management team while remaining New Penn's chief executive.
In its press release, Shellpoint said New Penn would expand its product line to include nonconforming products such as jumbo loans, investor property loans and second home loans.
“As the housing market recovers, the private sector will need to assume a larger role in mortgage originations,” said Bruce Williams, Co-CEO of Shellpoint. “There are a significant number of creditworthy borrowers who cannot get credit because they don’t meet the criteria of the government agencies. There is a significant opportunity for a well capitalized specialty finance company that is not burdened with a legacy loan portfolio.”
Shellpoint will own the loans New Penn originates. Plans are to securitize those loans, with Shellpoint retaining some of the securities, which the company added meets the government's goal of "keeping skin in the game."
In 2010, New Penn originated $1.2 billion in mortgages.
