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Flagstar, Santander close mortgage warehouse book deal

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Flagstar, Santander close mortgage warehouse book deal

Flagstar Bank FSB has completed its purchase of Santander Bank NA's mortgage warehouse loan book, bringing in approximately $1.7 billion in loan commitments to become the fourth-largest warehouse lender in the U.S., according to the press release.

The Troy, Mich.-based bank said the transaction involves commitments four times larger than its current portfolio, with "slightly narrower" pricing but about 50% longer days-on-line. The acquisition will lower parent company Flagstar Bancorp Inc.'s Tier 1 leverage ratio by approximately 40 basis points but be "moderately accretive" to its earnings in 2018.

The terms of the deal were not disclosed.

Flagstar Bank had $16.86 billion in assets at the end of 2017. Santander Bank, the Boston-based subsidiary of Spain's Banco Santander SA, had $74.45 billion.