PacWest Bancorp has sold its residential business-purpose business, Civic Financial Services, to real estate lending firm Roc360, the Wall Street Journal reported this week. The struggling Los Angeles-based regional bank closed the deal on Tuesday, but didn’t disclose financial terms, according to the report. Roc360 will take on Civic’s business operations, including its brand, data, … [Read more…]
PacWest Bancorp agreed to sell its Civic Financial Services unit to real estate lending firm Roc360, as the regional bank seeks to bolster liquidity following turmoil among its peers.
Roc360 has purchased the origination assets of Civic Financial, the New York-based firm said in a statement Tuesday. Excluded from the sale are previously originated, loans and loan servicing operations.
Civic Financial, which PacWest acquired in early 2021, specializes in so-called residential business-purpose loans, or mortgages explicitly made for a borrower’s investment property. Civic has lent more than $9.4 billion through its borrower-direct, broker, and correspondent channels since 2014, according to the statement.
Representatives for Beverly Hills-based PacWest didn’t immediately respond to a request for comment placed outside business hours. The Wall Street Journal reported the news earlier, citing Maksim Stavinsky, Roc360’s co-founder and president.
PacWest rose as much as 9.8% in premarket trading on Wednesday. Shares of PacWest are up 29% this week through Tuesday after it agreed to sell a $2.6 billion portfolio of real estate construction loans although the stock is still down 68% so far this year.
Pacific Western Bank has acted to guarantee more liquidity via private and federal facilities but excluded the possibility of raising capital at this moment, it announced on Wednesday.Â
Arc Home CEO Richard Bradfield said Pallante’s “extensive knowledge and experience in the non-QM and non-agency space, coupled with his proven ability to lead a team of sales professionals and achieve stellar results, will be instrumental” in driving the company’s continued growth and success. Pallante joined Arc after a stint at CIVIC Financial Services, where … [Read more…]
In addition, the company announced that CIVIC will not be originating any new loans for a 30 day period to reduce loan growth. CIVIC, however, will continue operations and funding loans, executive vice president of operations Merced Cohen confirmed. In an update from the CIVIC senior leadership team’s meeting with PWB’s executive team back in … [Read more…]
Housing price volatility appears to have led many real estate investors to temporarily reevaluate their purchase plans, according to new data from Redfin. Home purchases made by real estate investors dropped 45.8% on an annual basis in the fourth quarter, the steepest decline since analysis of the data began in early 2000. Volumes slowed even … [Read more…]
PacWest Bancorp is restructuring its operations as it looks to exit silos and unify its business lines. That includes making changes at its Civic Financial Services mortgage lending business. “PacWest has a long history of acquisitions that brought us great customers and talented employees, but also very processes and different cultures,” said Paul Taylor, who … [Read more…]
Sprout Mortgage has made two major appointments as it looks to bolster its executive team. The non-QM lender announced Wednesday the promotion of Michael Strauss to CEO, with former chief production officer Shea Pallante succeeding him as president. Pallente has been with Sprout Mortgage since 2016 and has helped the company achieve tremendous growth. He brings … [Read more…]
Bill Tessar (pictured) is coming off the back of an amicable acquisition. The president of private lending firm Civic Financial Services (CIVIC) told MPA that his company’s recent acquisition by PacWest Bancorp from parent company Wedgewood was a “perfect scenario” for every party involved. CIVIC got access to extremely cheap capital, Wedgewood got a big … [Read more…]