Guaranteed Rate has announced its acquisition of Stearns Holdings LLC from the private equity firm Blackstone. The financial terms of the transaction were not disclosed.
The Lewisville, Texas-headquartered Stearns generated more than $20 billion in origination volume in 2020 through its 50-state operations that encompassed retail, joint venture, partnership, and wholesale channels. However, the company ran into financial difficulties during the previous year and declared Chapter 11 bankruptcy in July 2019, and Blackstone, which acquired a majority stake in the company in August 2015, took full ownership in November 2019.
In a press statement, the Chicago-headquartered Guaranteed Rate said Blackstone will retain “an interest in Guaranteed Rate and will continue to support the integration and growth of the Guaranteed Rate vision.” Guaranteed Rate added that it planned to integrate and rebrand Stearns Holdings' retail operation as Guaranteed Rate while the acquired company's wholesale and partnership businesses will remain as standalone operations with Stearns CEO David Schneider at the corporate helm.
“We’re thrilled about this transaction,” said Schneider. “Guaranteed Rate is a formidable player in the mortgage industry, and this combination will empower our employees and partners to reach more customers, generate more business and guide more people through the homeownership journey.”
“We’re excited about bringing Stearns Holdings into the Guaranteed Rate family,” said Guaranteed Rate President and CEO Victor Ciardelli. “Pairing the incredible talent throughout Stearns’ organization with that of our existing team exemplifies the best of the best in the mortgage business, yielding an even more powerful platform.”
Guaranteed Rate is part of the wider Guaranteed Rate Cos. that also includes Guaranteed Rate Affinity LLC and Proper Rate LLC. The parent company has more than 9,000 employees in over 750 offices, and its’ retail mortgage operation funded more than $73 billion in 2020.