based in Chicago Guaranteed rate You will discontinue the 3rd party wholesale channel, Stearns Wholesale Lending, just one year after its acquisition of the multi-channel lender.
“Guaranteed Rate will continue to thrive and win market share by laser-focusing on leveraging the industry-leading buying platform backed by the best loan officers in the company,” Victor Ciardelli, CEO of Guaranteed Rate, wrote in an email to brokers. HousingWire reviewed.
To ensure success, “a company sometimes makes tough decisions,” but the Guaranteed Rate leadership is committed to taking what really is the best value for its customers, Ciardelli wrote. The email explained that the last day to register the loan is January 12, while the last day to close the deal is February 28.
Guaranteed Rate acquired Stearns Holdings in January 2021 for an undisclosed amount from financial giant Blackstone Group, which also acquired a stake in Guaranteed Rate as part of the deal. The previous year, Stearns had created $20 billion in loans.
HousingWire stated in 2021 that Stearns’ retail operations would be combined at a guaranteed rate. Wholesaling, joint venture and partnership businesses remained as stand-alone segments led by David Schneider, CEO of Stearns. Stearns had a large partnership company, led by Steve Stein, a more limited retail operation and wholesale channel that was the largest in the industry as recently as 2013, but lost market share to UWM.
Founded in 2000 and known for its robust retail operations, Guaranteed Rate has grown in stature in recent years. Upon acquiring Stearns, the company sought to strengthen its retail loan assets, expand its JV platform, and develop new omnichannel capabilities. HousingWire stated that the acquisition will provide significant revenue for the guaranteed rate to pursue a potential IPO.
The $90 billion guaranteed price originated from January to September 2021, up 81.8% over 2020, according to Inside Mortgage Finance. The size puts the company in the eighth place among the best mortgage lenders in the country.
The company’s senior loan officers set creation records, explaining in part Ciardelli’s promise to invest and focus on the procurement platform used by LOs.
For example, Massachusetts-based Chant Panossian said he funded a whopping $2 billion in total construction volume from November 2020 to November 2021. This figure is believed to be a record for a retail loan originator. His colleague Ben Cohen, a loan officer from Illinois, crossed the $1 billion threshold in September 2021.