New Penn Financial’s growth in the wake of its parent company being acquired by New Residential Investment Corp. is set to continue, as the lender announced Monday that it is acquiring the correspondent lending division of Envoy Mortgage.
New Penn is owned by Shellpoint Partners, which is also the parent company of Shellpoint Mortgage Servicing, Avenue 365, a title and settlement services provider, and eStreet, an appraisal management company.
Late last year, New Residential announced that it planned to acquire Shellpoint, which is owned in part by Lewis Ranieri’s Ranieri Partners, in a $190 million deal.
After the announcement of the acquisition, New Penn said that the company planned to use the deal as an impetus to its growth.
New Penn followed up on that by expanding into Nevada with the launch of Synergy Home Mortgage. The joint venture with two local real estate agencies operates under New Penn’s Shelter Mortgage subsidiary, which New Penn acquired back in 2014.
Now, the company is growing again by acquiring Envoy Mortgage’s correspondent lending division, which Envoy rolled out in January 2013.
“Finding a partner that shares our values in quality and client service was extremely important to us in building out this division,” said Kevin Harrigan, New Penn’s president.
“The Envoy team has demonstrated consistent business growth and earned a solid industry reputation and a loyal client base. We’re thrilled to join with an organization that is already excelling in this space,” Harrigan added. “We’re excited to welcome the Envoy Correspondent team to the New Penn Financial family and look forward to having them help us expand our presence in the correspondent lending arena.”
According to New Penn, the addition complements its existing lending channels: call center, joint venture, retail, and wholesale.
As part of the deal, Envoy’s existing correspondent sales and operations staff, along with the division’s management, will be moving to New Penn.
The company said that Envoy’s current clients will see expanded product offerings, including non-agency and proprietary lending programs.
The new division began conducting business under the name New Penn Financial National Correspondent Lending Division on April 9, 2018.
New Penn will continue operating its Wholesale and Emerging Banker Lending group as part of its third-party origination division.
“We are very excited about joining the New Penn family,” said Dan Hastings, EVP/Envoy Correspondent Lending Division. “I’m proud of our group and what we’ve built over the last five years. In addition to the new products and servicing capabilities offered by New Penn, this amazing opportunity will allow us to further grow and expand our correspondent channel.”
Financial terms of the deal were not disclosed.