Stronghill Capital shuts down consumer, correspondent lending
Small-balance
commercial
lender
Stronghill
Capital
shut
down
its
nascent
consumer
and
correspondent
lending
businesses
late
last
week.
The
Austin,
Texas-based
lender
will
continue
offering
small-balance
commercial
and
business
purpose
debt
service
coverage
ratio
(DSCR)
loans
to
its
clients,
CEO
John
Eisinger
told
HousingWire
Monday
morning.
He
cited
a
difficult
market
and
elevated
rates
as
reasons
for
shutting
down
correspondent
and
consumer
lending
businesses,
which
were
added
in
2022.
Eisinger
confirmed
that
“a
few”
staffers
were
laid
off
as
a
result
of
the
closure,
but
declined
to
specify
how
many.
He
said
Stronghill
is
in
the
process
of
alerting
clients
whose
loans
were
in
the
pipeline
so
they
could
transition
to
another
lender.
The
company,
which
is
owned
by
asset
management
firm
Arrowmark
Partners,
sells
non-QM
loans
via
brokers
for
clients
—
usually
LLCs,
C-corps
or
S-corps
—
to
acquire
residential
real
estate
for
commercial
and
investment
purposes.
Dustin
Wells,
who
was
appointed
as
co-president
at
Stronghill
Capital
in
2022,
told
HousingWire
in
November
2022
that
the
lender
projected
between
$400
million
and
$500
million
in
originations
in
the
residential
consumer
space
in
2023.
Eisinger
declined
to
say
how
much
origination
volume
the
now-shut
down
consumer
businesses
generated,
but
said
it
was
a
“small
piece”
of
the
overall
business.
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