Acquisition to strengthen Firstsource’s offerings in the US mortgage value chain with access to loan QC and due diligence capabilities, plus mid-market lenders.
Firstsource Solutions Limited (NSE: FSL, BSE:532809), a global provider of Business Process Management (BPM) services and a RP-Sanjiv Goenka Group company, announced today that it has entered into an agreement to acquire The StoneHill Group through its mortgage company Sourcepoint, one of US’s leading providers of outsourced mortgage services and solutions, subject to regulatory approvals. The acquisition enhances Firstsource Solutions’ mortgage offerings with the sophisticated domain expertise — backed by a proprietary platform — for mortgage quality control (QC) and due diligence, while also increasing access to mid-market lenders, where StoneHill is a market leader.
Firstsource Solutions is a leading provider of transformational solutions and services for the Banking and Financial Services, Healthcare, and Communications, Media and Technology industries. A loan QC leader, The StoneHill Group was founded in 1996 by David Green, who grew the company into one of the mortgage industry’s largest providers of outsourced mortgage services to banks, mortgage lenders and credit unions.
The booming lending market and climate of increased regulatory scrutiny highlights the critical nature of the QC and due diligence pieces of the mortgage value chain. As the industry shifts to loan products marked by higher complexity, the risk and cost of errors increases and thus the emphasis on QC services that support this shift. Due diligence services are also on the rise as residential mortgage loan securitization activity continues to increase after years of record originations, leading to investors shifting and rebalancing capital allocations with these valuable assets along with their Mortgage Servicing Rights (MSRs).
“This acquisition is very complimentary and provides us adjacent capabilities in the mortgage value chain. It enables us to scale the business by leveraging the strong demand for residential mortgage loan trading and securitization. We’re particularly excited about integrating the offerings of our companies to provide the best-in-class, end-to-end mortgage solutions to both mid and large market customers.” said Vipul Khanna, MD and CEO of Firstsource Solutions.
“Firstsource has extensive experience in growing capabilities and businesses and has become a market leader by helping mortgage lenders and servicers operate with greater agility,” said Patrick Gluesing, President & COO of the StoneHill Group. “We consider them a perfect fit and look forward to leveraging their resources and industry reach to take our company to new heights.”