Love Funding operates the Midland's commercial FHA origination platform
Midland States sells subsidiary to Dwight Capital. (Credit: Pixabay/Gerd Altmann)
Midland States Bancorp has completed the sale of its subsidiary Love Funding to Dwight Capital, a New York-based mortgage company.
Love Funding operates the Midland’s commercial Federal Housing Administration (FHA) origination platform.
Midland stated that the deal is part of its effort to improve its efficiency, while reducing the volatility of its financial performance.
With the transaction, Dwight Capital claims to have now become one of the largest FHA/Housing and Urban Development (HUD) Multifamily & Healthcare financing firms in the country and expects to continue its HUD financing.
Midland States Bank will retain Love Funding servicing portfolio of $3.9bn
As the transaction is completed, Dwight Capital plans to integrate and rebrand Love Funding within the company.
Midland States Bank will retain the existing Love Funding servicing portfolio of about $3.9bn, which includes about $284m in low-cost deposits as of this June ending.
Headquartered in Effingham, Illinois, Midland States Bancorp is the parent company of Midland States Bank.
Love Funding will continue managing and overseeing its pipeline of client transactions and later on Dwight Capital will oversee the transactions, adhering to the rules of HUD and Government National Mortgage Association (GNMA).
Dwight Capital co-CEO Adam Sasouness said: “Our clients appreciate our dedicated attention and white-glove service that is synonymous with Dwight Capital, and our financing volume has increased exponentially as a result.
“It was therefore imperative that we take action to rapidly grow our personnel with a group of the highest caliber, so that our quality and service continue to excel as we grow.”
The Illinois-based bank expects no gain or loss from the sale of Love Funding.
Midland States Bancorp is a community-based financial holding company, with total assets of approximately $6.64bn as of 30 June 2020.