Stonegate Mortgage Corp., Indianapolis, has sold $115 million of its common stock in a private offering, with the initial purchaser being FBR Capital Markets. Net proceeds were almost $107 million.
Already, the company has spent $10 million of that to pay off existing debt that was borrowed to build its mortgage servicing portfolio.
Stonegate CEO Jim Cutillo said the company intends to file an S-1 registration statement with the Securities and Exchange Commission in June and the stock should be brought to the general market later this year. The actual timing depends on such things as SEC approval of the S-1.
The primary uses for the proceeds will be to grow its production operation to be able originate loans in the 48 contiguous states (it currently operates in 31), as well as to grow its
Cutillo noted that approximately half of its current originations are for home purchases. It is working on building relationships with referral partners such as Realtors and homebuilders to gain more purchase share.
It previously acquired what had been the
“We integrated that platform over the last six months into our platform, and now we have an integrated solution for our correspondents to originate, finance and ultimately sell us the loan,” Cutillo said. He added the company has started a pilot program recently towards this end.
Stonegate recently launched a
The new capital “positions us to gain market share and compete with bank owned originators and servicers who have controlled the market since the crisis,” said Cutillo.
