Gleacher & Co. Inc., a New York-based investment bank, has announced plans to launch residential mortgage banking initiative. In connection with the initiative, the firm has agreed to acquire, through its newly formed subsidiary, Descap Mortgage Funding LLC, all of the shares of common stock of ClearPoint Funding Inc. from Greg O'Connor, the founder and CEO of ClearPoint Funding.
ClearPoint Funding is a residential, nondepository lender based in Marlborough, Mass., and is currently licensed as an independent mortgage lender in 13 states and Washington, D.C. ClearPoint Funding is a direct-endorsed lender under the U.S. Department of Housing and Urban Development that currently employs approximately 100 employees.
‘Strategically, the acquisition of a mortgage bank to originate mortgages is a logical extension of our existing secondary mortgage and asset-backed business,’ says Robert Fine, head of Gleacher & Co.'s mortgage, asset-backed securities and rates group.
Mark Pappas, president of Descap Mortgage Funding, will be responsible for overseeing Gleacher & Co.'s interest in ClearPoint Funding after the acquisition is consummated.
Prior to joining Gleacher & Co. earlier this year, Pappas was one of the original founders of MortgageIT Inc., a wholly owned mortgage banking subsidiary of MortgageIT Holdings Inc. O'Connor will remain with ClearPoint Funding and will lead the overall operations effort of the mortgage lender.
The acquisition is subject to various regulatory approvals and customary closing conditions.
SOURCE: Gleacher & Co. Inc.