June 1, 2011
NEW YORK, JUNE ‐‐ Shellpoint Partners LLC, a specialty finance company, announced today thatit has completed the acquisition of New Penn Financial, LLC, a leading originator of FHA/VA and Agency Conforming loans, based in Plymouth Meeting, Pennsylvania.
Founded in 2008, New Penn has developed a substantial presence in the marketplace through three lending divisions- Call Centers, Financial Services (serving brokers and community banks), and a traditional Retail unit. New Penn has 24 offices and over 400 employees. In 2010, New Penn originated $1.2 billion in mortgages.
In addition to its current product line, New Penn will expand mortgage originations to creditworthy borrowers who do not fit the government agencies' underwriting criteria - for example, those seeking jumbo loans or second homebuyers and investors. "As the housing market recovers, the private sector will need to assume a larger role in mortgage originations," said Bruce Williams, Co ‐CEO of Shellpoint. "There are a significant number of creditworthyborrowers who cannot get credit because they don't meet the criteria of the government agencies. There is a significant opportunity for a well capitalized specialty finance companythat is not burdened with a legacy loan portfolio."
Mr. Williams said Shellpoint will own the loans created by New Penn and use them to create securities, some of which will be held in Shellpoint's portfolio, thereby complying with the government's policy of "keeping skin in the game."
Shellpoint is a joint venture between management and Ranieri Partners, a leading private investment firm focused on financial services opportunities. In addition to Williams, Shellpoint's management team includes co‐CEO Saul Sanders and Chief Investment Officer, BobMagee. Jerry Schiano will also join Shellpoint's management team while retaining his position as CEO of New Penn.
Schiano looks forward to what the new organization will bring to the market. "Shellpoint's capital and ability to develop proprietary products will greatly expand the options that we can bring to our borrowers in all of our business channels." The Company plans to expand its national presence through both organic growth and selective acquisition, with specific focus on traditional retail opportunities.