CALIBER FUNDING AND VERICREST FINANCIAL AGREE TO COMBINE OPERATIONS
Combined Company to Offer Residential Mortgage Loan Origination and Servicing Nationwide
DALLAS, Texas-January 17, 2013- Caliber Funding LLC ("Caliber") and Vericrest Financial, Inc. ("Vericrest") today announced that the companies' shareholders, comprised of various affiliates of Lone Star Funds, have agreed to combine Vericrest and Caliber to create a full-service, residential mortgage banking organization offering both loan originations and loan servicing solutions. The combined organization will continue to be owned by and have the capital backing of Lone Star Funds.
Vericrest's and Caliber's complementary business models will allow for seamless integration, providing a strong foundation for growth through substantial synergies. Most importantly, as a full-service mortgage banking institution with an extensive footprint across the U.S., the combined organization will better serve its customers through an enhanced range of best-in-class lending and servicing solutions.
"I am thrilled about combining the operations of Vericrest and Caliber to create a full-service mortgage banking organization," said Jim Ferriter, President of Caliber. "Loan originations and servicing are a natural fit, and we expect the combined company will generate significant revenue opportunities to support continued growth. We are looking forward to working with Vericrest's talented team of professionals and to building a larger, more diverse organization that offers greater opportunities to our customers, employees and investors."
"Combining Caliber and Vericrest will create tremendous new opportunities for growth in our target markets and within our organizations," said David Schneider, Chief Executive Officer of Vericrest. "Until recently, Vericrest only offered servicing solutions to affiliates of Lone Star. Since offering our unique, proactive mortgage servicing solutions to other investors, we have experienced significant growth. Caliber's innovative lending platform is a perfect complement to our servicing business and will enable us to refinance and retain loans in our loan servicing portfolio, as well as retain servicing rights on the loans Caliber originates. We believe the combined company will allow us to provide innovative and cost-effective mortgage solutions across a much broader customer base."
In light of customary regulatory and legal conditions and approvals, the combination is expected to close within four to six months. While integration planning is already underway, Caliber and Vericrest will continue to operate independently until the final closing.
About Caliber Funding
Caliber is a national residential mortgage lender that originates loans through various channels and transaction types including a network of retail branches, wholesale lending, mini-correspondent lending, and a consumer direct centralized operational center. It specializes in a variety of loan programs for purchases and refinances including conforming, jumbo, and government products. Headquartered in Dallas, TX, Caliber now originates an average of $656 million each month but anticipates continued rapid growth in the coming months and years. Caliber employs over 950 mortgage lending professionals nationwide inclusive of 225 loan originators in 65 retail branches and 60 Wholesale Account Executives serving over 750 active broker partners. To learn more about Caliber Funding, please visit www.caliberfunding.com.
Vericrest is a premier financial services company that specializes in the servicing and subservicing of residential conforming and non-conforming residential mortgage loans in all 50 states. Vericrest employs over 600 mortgage-servicing professionals across three Centers of Excellence in Texas, Oklahoma and California, and provides superior service and innovative solutions to meet the needs of its customers while maintaining the highest levels of integrity and compliance. Vericrest's servicing portfolio currently includes approximately 55,600 mortgage loans with an aggregate outstanding principal balance of $10.1 billion. Vericrest intends to grow its loan servicing portfolio by continuing to acquire Mortgage Servicing Rights (MSRs) and subservicing rights from investors, as well as retaining the servicing rights on the loans Caliber originates. To learn more about Vericrest, visit www.vericrestfinancial.com.
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