Wintrust Financial Corp. said that its subsidiary, Barrington Bank & Trust Company, through its division Wintrust Mortgage, closed on its previously disclosed agreement, acquiring certain assets and assuming certain liabilities of iFreedom Direct Corporation DBA Veterans First Mortgage, a Utah Corp.
Wintrust Mortgage also acquired servicing rights from Veterans First Mortgage on approximately 8,300 loans, totaling an estimated $1.4 billion in principal balance.
Veterans First Mortgage is a consumer direct lender with three offices, operating two in Salt Lake City and one in San Diego. The company originated in excess of $800 million in loans in 2017 and employs approximately 400 employees. Veterans First Mortgage specializes in VA lending, primarily for new home purchases, which is fairly unique to the consumer direct lending business. The acquisition brings Wintrust Mortgage a platform that integrates CRM technology, customized loan origination software and telephony systems to produce an efficient loan experience for its customers.
The terms of this cash transaction are not being disclosed by the parties; however, a significant portion of the purchase price for Veterans First Mortgage assets is conditioned upon certain future profitability measures.