Stonegate Mortgage to acquire Crossline Capital.

Position:NEWS ROOM

>> Indianapolis-based Stonegate Mortgage Corporation completed its initial public offering (IPO) of 8,165,000 shares and announced a definitive agreement to acquire California-based Crossline Capital Inc. during the third quarter. Crossline is licensed to originate in 20 states, and originated $572 million in mortgages during 2012 and $374 million in loans during the nine months ending Sept. 30, 2013.

Stonegate said in a release that the acquisition will help expand its retail channel and accelerate its geographic expansion. Crossline will be operated as a wholly owned subsidiary of Stonegate Mortgage. Crossline is an approved Fannie Mae Seller/Servicer.

In a Nov. 14 press release, Stonegate announced that it also has entered into a binding letter of intent to acquire the wholesale lending channel and certain distributed retail assets of Nationstar Mortgage Holdings Inc.

For the third quarter, Stonegate originated $2.3 billion in loans, which was up 12 percent from the $2.1 billion originated in the second quarter. This year's third-quarter production volume was up by 123 percent over the prior year's mortgage origination volume.

The company's servicing portfolio at the end of the third quarter had an unpaid principal balance of $9.7 billion. That was an increase of 28 percent from the second quarter. The size of the servicing...

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