New Fed Mortgage, a retail lender licensed to do business in all New England states except Vermont, will acquire Commonwealth Mortgage LLC early in 2019. Commonwealth Mortgage is a direct to consumer or internet lender.
The acquisition means New Fed will have a direct to consumer channel in states where it doesn’t have a retail presence, and it can expand into additional states, including Virginia, Illinois, Maryland and Pennsylvania. Also, New Fed will be hiring additional staff to coordinate the internet mortgage division.
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Brian Damico[/caption]
“The acquisition will allow us to grow the company further and serve other markets in more states as well as to integrate and build out [Commonwealth's] existing platform of mortgage loan servicing which will create stronger relationships with our borrowers in the future,” said Brian Damico, president of New Fed.
Commonwealth has funded billions of mortgage loans since opening in 2000 and has expanded to a multi-state platform. It originates Fannie Mae, Department of Veteran Affairs, Federal Housing Authority and department of Agriculture Loans.
New Fed experienced rapid growth in 2018 adding on 25 new employees to its team along with the addition of two new retail branch locations. “Over the past year we have built our infrastructure and have been looking for opportunities for growth, said Damico. “Our vision for growth has been through retail branches in New England and to open a consumer direct channel outside of New England. The acquisition of Commonwealth enables us to do that while expanding our lending footprint. We are now more versatile with our current infrastructure and more importantly we have the right people in place.”
New Fed has specialized in residential retail mortgage lending since 2001 and is licensed in seven states with team of 65 employees. New Fed offers in house underwriting for conventional, jumbo, FHA, VA, USDA, portfolio lending and state-housing programs. Products available include first-time home-buyer programs with little zero down, pick your own term traditional fixed-rate programs, adjustable-rate-mortgage programs, construction loans and 203K renovation loans.
