Subsidiary of American Bankers Association Community Bank Mortgage announced its selection of Stonegate Mortgage to join its 63 private-bank network.
Stonegate will serve as a secondary market investor. Community Bank owner banks will be able to sell loans on a “servicing-released” basis to Stonegate, meaning that Stonegate will be able to maintain the original rights to the loan.
Community Bank is designed to leverage the collective bargaining power of risk-adverse community banks that sell loans in the secondary market.
“We’re very pleased to enter into this agreement with Stonegate Mortgage,” said president and COO Deborah Whiteside of Community Bank Mortgage. “Our bank owners will benefit from the execution advantage Stonegate brings to the table.”
Steve Landes, head of loan origination for Stone Mortgage added, “We see it is a chance to affirm our position as one of the fastest growing privately held mortgage lenders in the United States and provide additional benefits to our existing customers that are members of this mortgage cooperative, as well as provide mortgage products to their extensive list of member owners.”