American Mortgage News

Boston-based mortgage banking firm grows operations; Raises preferred equity investment from leading New York financial services company

BOSTON--(BUSINESS WIRE)--Summit Mortgage LLC, a premier, private Boston-based mortgage banking firm, today announced it experienced continued growth in 2006 despite a challenging mortgage and real estate market.

Summit’s growth has been fueled by expansion into the secondary mortgage markets and the recruitment of seasoned loan officers. “We’re excited about the prospect of entering into these new markets at a time when our competitors are shrinking,” said Richard S. Fedele, CEO of Summit Mortgage. “We feel like this is giving us a considerable competitive advantage.”

Summit experienced 30 percent growth in the number of loan officers in Massachusetts and Florida, recruiting loan officers with successful track records.

These developments have led to Summit raising additional equity capital from a group led by Daroth Capital LLC of New York City. The investment will enable Summit to continue its growth in both mortgage origination in New England and Florida as well as expand the company’s secondary trading operations.

“The investment from Daroth will allow us to continue to grow despite current market conditions. In addition to our retail lending business, our emerging wholesale and secondary trading operations are driving our expansion,” said Fedele. “With this investment, we will be able to expand the range of mortgage products we offer to our customers, improving both pricing and service levels.”

Peter Rothschild, managing member of Daroth, was particularly impressed by Fedele’s entrepreneurial leadership and intuitive knowledge of his business and client base.

“We are excited by the possibilities open to Summit,” said Rothschild. “At a time when much of the New England mortgage market is struggling, Summit has continued to grow. We perceive a tremendous opportunity to support a regional leader and help position the company for continued expansion. We look forward to a long relationship with Summit and Rick Fedele, and expect the company to prosper for years to come.”

About Summit Mortgage

Boston-based Summit Mortgage, founded in 1996, is one of the largest privately held mortgage banking firms in Massachusetts. It closed more than $1.2 billion in mortgage loans in 2005. Summit operates nine branches in the Boston area, including three in the city and one each in Lexington, Needham, Norwell, South Easton, Swampscott, and Wakefield, and three in Florida in Boca Raton, Naples, and Palm Beach Gardens. The company recently placed 103rd on the 2006 Inc. 500 list of the country’s fastest-growing private companies with 877 percent growth from 2002 to 2005.

About Daroth Capital LLC

Daroth Capital LLC is a New York-based financial services company. Daroth focuses on investments in the financial services, industrial, consumer product and information technology industries. The company will lead or co-lead equity investments up to approximately $10 million and co-invests with firms controlling larger funds on investments over $10 million. Through its wholly-owned subsidiary Daroth Capital Advisors LLC, the company provides investment banking services to a broad client base. Daroth Capital Advisors is a member of the NASD and SIPC, and is registered as a broker dealer with the SEC.
Contacts

PAN Communications
Andy Baron, 978-474-1900
summit@pancomm.com