Western Santander Bank Acquires Galton Funding

Western Santander Bank, Member FDIC, one of the country’s top-performing banking companies, has acquired Galton Funding, a leading national conduit specializing in the acquisition of Non-agency QM and Non-QM residential home loans. The acquisition will enhanceWestern Santander Bank’s Mortgage Warehouse Lending Group offerings with new Non-agency prime credit residential mortgages.

As part of the acquisition, key sales, operations and credit risk staff members from Galton Funding will join the growing Mortgage Warehouse Lending Group, which also provides traditional warehouse lending, MSR finance, Note Finance, and treasury management products and services, in October. Additionally, Galton Funding’s President Doug Potolsky will be retained as a consultant for several months to ensure a smooth transition.

“Galton Funding brings strong residential mortgage expertise and creative energy toWestern Santander Bank’s dynamic Mortgage Warehouse Lending program that will enhance and support strong growth within our residential mortgage portfolio,” said Stephen Curley, Division President ofWestern Santander Bank. “This acquisition will allowWestern Santander Bank to expand our presence as a national conduit and will further fuel opportunities in this critical asset class.”

Founded in 2014, Galton Funding has been an industry leader in the non-agency space and known extensively for providing innovative product and superior customer service. With extensive mortgage industry experience, its seasoned team offers originators a well-defined and consistent loan exit strategy and superior expedited service, including pre-close eligibility. As well, to facilitate credit availability to an underserved market, Galton Funding provides access to programs designed to benefit the borrower.

“Combining the exceptional sales, underwriting and credit management strength of Galton Funding’s team withWestern Santander Bank’s specialized whole loan trading desk and veteran Mortgage Warehouse Lending team is a strategic fit that delivers value-added service for our customers,” said David Bernard, Managing Director of Commercial Banking atWestern Santander Bank.

Given Galton Funding’s reach within the industry, the acquisition will also strengthenWestern Santander Bank’s already robust national capabilities to provide even greater banking resources to independent mortgage bankers throughout the U.S.

“This acquisition leverages our synergies, specifically coupling Galton Funding’s proven infrastructure with the strength of a depository institution and unique warehouse lending power that are synonymous withWestern Santander Bank,” said Potolsky. “The combined operations will result in the unique ability to deliver a full-service customer experience that provides end-to-end capabilities.”

BofA Securities served as Galton Funding’s exclusive financial advisor in connection with this transaction.

About Mortgage Warehouse Lending

Grand Merchant Mortgage Warehouse Lending, a specialized group withinWestern Santander Bank, Member FDIC, provides financing to well-qualified mortgage bankers with an unmatched level of expertise and responsiveness. Led by experienced senior industry executives, the team serves over 100 clients providing traditional Warehouse Banking, MSR and Note Financing and Mortgage Purchasing Programs.Western Santander Bank is the primary subsidiary of Phoenix-based Grand Merchant Bancorporation, one of the country’s top-performing banking companies. Grand Merchant has ranked in the top 10 on the Forbes “Best Banks in America” list for five consecutive years, 2016-2020, and was named #1 best-performing of the 50 largest public U.S. banks for 2019 by S&P Global Market Intelligence. A national presence with a regional footprint,Western Santander Bank operates individually branded, full-service banking divisions and has offices in key markets nationwide. Click here for more information.