Key facts
- Luminate Bank acquired select assets of First State Mortgage Services.
- The acquisition aims to expand Luminate's mortgage presence in the Midwest and central U.S.
- Many First State employees, including CEO Rene Shaffer, will join Luminate Bank.
- Luminate originated $2.2 billion year-to-date, while First State originated $132 million in the same period.
- First State holds the No. 1 market share in Bloomington, Illinois.
Luminate Bank has acquired select assets from First State Mortgage Services, a move designed to bolster its mortgage lending operations across the Midwest and central United States. The financial terms of the transaction were not disclosed.
Many employees from First State, including its CEO and president Rene Shaffer, are expected to join Luminate Bank. According to data from mortgage tech platform InGenius, Luminate originated approximately $2.2 billion in mortgages year-to-date, while First State's production reached $132 million during the same period. Luminate's primary production states are New Jersey, Minnesota, and Florida, whereas First State has focused on California, Texas, and Florida, holding the top market share position in Bloomington, Illinois.
The integration will allow the incoming First State team to utilize Luminate's mortgage platform, which includes offerings such as construction loans, non-qualified mortgages, and reverse mortgages. As of Thursday, Luminate Bank has 418 registered mortgage loan officers, compared to First State's 35.
Eric Lovins, co-founder and president of mortgage lending at Luminate Bank, expressed that both organizations share similar core values. Rene Shaffer emphasized the significant role the mortgage process plays in clients' lives. Jeff Young, executive vice president of secondary at First State, will also transition to Luminate.
This acquisition follows Luminate Home Loans' previous integration of the NEO Home Loans team in late 2022. However, Luminate decided to close that division in 2024 to concentrate on embedding mortgage lending within its primary banking services. The former NEO Home Loans team is now partnered with Better.com.