Blackstone-backed mortgage lender Stearns Holdings LLC filed for bankruptcy as it seeks to clean up its debt-plagued balance sheet.
The Chapter 11 filing in New York shows that Blackstone Group Inc., which acquired a majority stake in 2015, could wind up owning most of the rest of Stearns. It’s the 20th-largest U.S. home lender, with about 2,700 employees and 100 retail offices, according to court papers.
Stearns blamed rising interest rates from late 2016 through 2018 for cutting into demand for residential mortgages, as well as a back-and-forth tussle with Pacific Investment Management Co. over potential solutions. The home lender ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.