A&D Mortgage is set to acquire Flagstar's former TPO business, according to a company executive at the wholesale lender.
Close to 300 former Flagstar employees, including account executives, underwriters and closers, will transition to the lender, along with technology, processes and procedures, A&D Mortgage's executive said Thursday.
In July, Mr. Cooper acquired
The A&D executive, who declined to disclose the price tag of the deal, said Mr. Cooper approached the company with the offer. The transaction will close at the end of March, though employees have already begun the onboarding process.
Mr. Cooper did not immediately respond to a request for comment.
A&D Mortgage has been on the lookout to acquire another company and the addition of Flagstar's TPO business will result in a "substantial boost in production," the executive said. Counting last year's production, Flagstar's TPO business and A&D Mortgage will be "a $10 billion a year business," they claimed.
The deal creates "good synergy" because Flagstar's TPO operation doesn't have non-QM products, the executive noted.
"We are the largest non-QM lender, so we can give them the best non-QM product, we'll give them second liens, we'll give them jumbo loans and a lot of other products that they don't have today," they added.
In addition to the announced acquisition, A&D Mortgage has made hires to strengthen its wholesale operations. It brought onboard industry
Both Taylor and Frank were co-founders of the wholesale division at Franklin American Mortgage, later acquired by Citizens Bank, turning it into a leader in the industry.
