When Capital One suddenly announced last year that it planned to exit its mortgage and home equity originations business, not much was known about what would happen to the more than 900 employees that would be laid off as a result of Capital One’s decision.
Well, it turns out that a small percentage of those employees will be moving over to Flagstar Bank.
Flagstar announced Thursday that it is expanding its consumer direct lending operation by adding a team from Capital One.
Leading the team from Capital One to Flagstar will be Rocky Stubbs, who was head of consumer direct and digital mortgage for Capital One. At Flagstar, Stubbs will serve as senior vice president and director of consumer direct lending.
In this role, Stubbs will lead Flagstar’s Michigan-based direct-to-consumer group.
Stubbs will also lead a team of 20 professionals that previously worked at Capital One. That team will operate from Dallas, Texas, where Capital One’s mortgage operation was based.
Kristy Fercho, president of mortgage for Flagstar, said that adding the Capital One team will help grow the company’s market share in the purchase mortgage market.
“Capital One built a best-in-class digital platform, so we are excited about attracting this proven, high-caliber team in the direct-to-consumer space to Flagstar,” Fercho said.
“Our Michigan team did a great job last year shifting to a purchase market, and the Capital One team will provide additional capacity to strengthen and scale our platform and take advantage of market opportunities,” Fercho added. “The combined team will enhance our capabilities in servicing recapture, digital acquisition, and home equity.”
The additions come on the heels of a series of moves designed to grow Flagstar’s mortgage business.
Last year, the company acquired Stearns Lending’s delegated correspondent lending business. In May, Flagstar closed on its acquisition of “certain assets” of Opes Advisors, a full-service mortgage bank and financial advisory firm. And late last year, Flagstar acquired eight Desert Community Bank branches in San Bernardino County, Calif., from East West Bank.