Troy, Michigan-headquartered Flagstar Bank is acquiring the default servicing operations of a vendor supporting its serviced loan portfolio. Flagstar said that it anticipates continuing operations at the vendor’s Jacksonville, Florida facility and making offers of employment to the vendor’s Jacksonville staff.
The bank announced that the transition is expected to be seamless for both customers and employees, as there are no planned system changes, no loan or data transfers, and borrowers’ points of contact will remain the same. Following the closing of the transaction, Flagstar will maintain its default servicing operations in Jacksonville, at its headquarters in Troy, Michigan, and in Bellevue, Washington. The transaction is subject to customary closing conditions and is expected to close Sept. 27, 2019.
“Default servicing is a critically important service we provide to our mortgage servicing and subservicing clients,” said Lee Smith, COO at Flagstar. “With the rapid growth of our subservicing portfolio, it makes sense to strengthen our capabilities on the default side. This acquisition further leverages our industry-leading oversight and monitoring, while providing clients the compliance infrastructure and other benefits that Flagstar, as the nation’s third-largest federal savings bank, can offer.”
Flagstar ranks as the fifth largest and one of the fastest-growing subservicers in the country, with a combined servicing and subservicing book approaching 1 million loans and capacity for additional growth. In 2018, Flagstar was recognized by Fannie Mae as a STAR servicer in the general servicing category for the fourth consecutive year.