Stearns Lending
| Company type | Private |
|---|---|
| Industry | Mortgage lending |
| Founded | 1989 |
| Founder | Glenn Stearns |
| Defunct | 2021 |
| Fate | Acquired by Guaranteed Rate |
Area served | United States |
Key people | Glenn Stearns (founder, former CEO), Brian Hale (former CEO), David Schneider (former CEO) |
Stearns Lending, LLC operated as a wholesale, retail, and correspondent lending institution in the United States. Established in 1989, it rose to become the fifth-largest privately owned lender nationwide by 2013. The company entered bankruptcy proceedings in 2019 and was subsequently purchased by Guaranteed Rate in 2021.
History
Glenn Stearns, who served as founder and CEO until May 2012, named Brian Hale—previously president of MetLife Home Loans—as his replacement.[1]
In May 2017, David Schneider was appointed CEO and joined the board of directors.[2]
Between 2013 and 2015, Stearns was recognized on the Inc. 5000 list highlighting the fastest-growing private firms.[3] In August 2015, ownership of Stearns Holdings transferred to The Blackstone Group.[4][3] The following year, the American Bankers Association endorsed Stearns via the Corporation for American Banking.[5]
2019 bankruptcy
Facing financial difficulties amid increasing interest rates during 2017–2018, Stearns sought to restructure $183 million in senior secured notes predominantly held by PIMCO in mid-2019; however, these talks were unsuccessful.[6] On July 9, 2019, the company filed for Chapter 11 bankruptcy protection.[6] By September of that year, a reorganization deal was reached with principal noteholders.[7]
In 2021, Guaranteed Rate, headquartered in Chicago, acquired Stearns for an undisclosed sum,[8] and by 2022, the Stearns brand was phased out.[9]
- ↑ Cite error: Invalid
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- ↑ Kleimann, James (2021-01-05). "Guaranteed Rate to acquire Stearns Lending".
- ↑ "Guaranteed Rate closes Stearns wholesale channel". 2022-01-12.