Home Point Financial Corp.’s $211 million acquisition of Stonegate Mortgage Corp. is now complete, as Stonegate disclosed in a filing with the Securities and Exchange Commission that the acquisition became final on Wednesday.
As a result of the deal, Stonegate is now wholly owned direct subsidiary of Home Point.
“The successful completion of this acquisition is an important milestone for us,” said Willie Newman, Home Point’s chief executive officer.
“Home Point will now have full coverage in all channels of origination, as well as warehouse lending offerings. In addition, the acquisition brings an in-house servicing platform to Home Point, giving us the ability to directly manage relationships with our customers,” Newman added.
“The most exciting part is combining the experience and talent of these two great companies in the service of our customers,” Newman concluded.
But that’s hardly the only change for Stonegate.
According to the company’s SEC filing, many of the company’s executives are stepping down in conjunction with the completion of the Home Point acquisition.
Specifically, Jim Smith is stepping down from his positions as chief executive officer and president of Stonegate; Carrie Preston is stepping down as chief financial officer; R. Douglas Gilmore is stepping down as chief information officer; and Kelly Henry is stepping down as chief risk officer.
Additionally, David Dill is stepping down as executive vice president of loan servicing; David Kress is stepping down as general counsel and secretary; Steve Landes is stepping down as director of national sales and as president of NattyMac; and John Macke is stepping down as executive vice president of capital markets.
Smith will also be stepping down from Stonegate’s board of directors. All of the other members of the board will also be stepping down, including: Richard Kraemer, Kevin Bhatt, James Brown, Sam Levinson, Richard Mirro, and J. Scott Mumphrey.
According to Stonegate’s SEC filing, “none of these resignations were as a result of any disagreement with Stonegate, its management or its board of directors.”
All of the departures take effect on Wednesday.
According to details provided by Home Point, Smith will serve as the combined organization’s chief operating officer.
“Stonegate Mortgage always has been focused on delivering a superior customer experience,” Smith said. “We are delighted to join the Home Point team to help customers achieve the American dream of homeownership.”
In replacement of the departed Stonegate execs, Newman, Agha Khan, Stephen Levey, and Eric Rosenzweig became the directors of Stonegate.
Newman will also be taking on the roles of CEO and president of Stonegate, while Howard Nathan will take over as Stonegate’s chief financial officer and treasurer; Matthew Goodman will take over as secretary; and Sheryl Johnson will step in as chief legal officer.
Additionally, the deal, which was first announced in late January, will see Stonegate’s shareholders receive $8 for each share they own.
Stonegate’s SEC filing details what will now happen to Stonegate’s shares, which were previously traded on the New York Stock Exchange under symbol “SGM.”
Per the SEC filing, Stonegate’s shares will be suspended from trading on the NYSE prior to the opening of trading on June 1, 2017. Then, the NYSE will officially delist Stonegate’s shares.