Sourcepoint Enters Into Agreement To Acquire The StoneHill Group
Sourcepoint, a Firstsource company and provider of outsourced mortgage services and solutions, has entered into a definitive agreement to acquire The StoneHill Group, subject to regulatory approvals. The acquisition enhances Sourcepoint’s mortgage offerings with sophisticated domain expertise – backed by a proprietary platform – for mortgage quality control (QC) and due diligence, while also increasing access to mid-market lenders.
Firstsource Solutions, a provider of Business Process Management (BPM) services and a RP-Sanjiv Goenka Group company, is a 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 domestic 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 increase and lead to an 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 complementary 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.
“Sourcepoint 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 David Green, Chairman & CEO 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.”
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