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Special Reports
Broker to Banker
Stanley Capital Growing By Rolling Up Brokerages
By Brad Finkelstein
ENGLEWOOD CLIFFS, NJ --While the most well-known way of making the transition
from mortgage broker to mortgage banker is to get a warehouse line and change one's licensing, another way is to
participate in a rollup. This is when a mortgage banker aggregates mortgage brokers under its corporate umbrella
through company purchase transactions.
Stanley Capital here is looking to expand its reach up and down the East Coast
(and eventually nationally) by acquiring mortgage brokerages.
Stan Mankovsky, a co-founder and chief executive of the firm, said, "We now
want to broaden our Stanley Capital footprint. By strategically acquiring independent mortgage brokerages that
are ill-prepared to weather the anticipated softer market conditions, we can build on their established broker's
relationships and enhance their success rate by supporting them with the Stanley Capital approach, systems and
back room processes. We can help these smaller brokerages succeed."
The other co-founder and president, Stan Greenberg, said the company considers
prime brokerage acquisition markets to be Florida, Arizona, Nevada and California.
He added Stanley is looking at the targeted firm's strength of their broker/client
relationships, and the reputation in the community in which they do business.
Stanley Capital currently has 10 branches in New Jersey, New York, Florida, Connecticut
and Pennsylvania. Plans are to acquire 40 branches over the next two years, with 10 in the next six months alone.
In an interview at the recent Regional Conference of Mortgage Bankers Associations
meeting in Atlantic City, N.J., Mr. Mankovsky said when he and Mr. Greenberg started the firm in 1998, the focus
was on providing service and quality from the start.
What sets Stanley Capital apart is its "rigorous process" in hiring
key people. In an industry where one of the purposes of the trade show is to catch up on who is now working for
who, Stanley Capital seeks to hire people for life, with the goal of having them retire with the company, Mr. Mankovsky
said.
"What we are all about is growth, but it has to be the right growth,"
he explained.
The firm itself is a "mini-United Nations," he pointed out. Mr. Mankovsky
was born in Russia and the company has a large number of employees from Eastern European nations. But its executive
vice president is Cuban and there are a great number of employees that have a Hispanic background.
This immigrant experience gives Stanley Capital an advantage when working with
customers of similar upbringing. Mr. Mankovsky recalled the struggles of his parents who came to this country in
1979 starting from scratch after having been professionals in Russia.
It gives the firm an insight into understanding how these immigrant groups think
and helps it establish trust with them.
In addition, Stanley Capital teaches its loan officers to listen to the client's
needs in order to be able to customize a solution for them. The philosophy for the company comes from his life
experience, he said.
When his parents went to a bank to get their first mortgage loan, no one would
talk with them. The key to Stanley Capital's growth is that it listens to its clients to find out what is important
to them.
Stanley Capital is originating between $75 million and $80 million per month because
of the service levels it provides. This includes something as basic as providing each one of its clients with a
plant at the loan closing.
That is something that the borrowers remember and actually thank the company for.
In return, when the borrower looks to refinance or to get a mortgage on a new property, the first thing in their
mind is to call Stanley Capital, Mr. Mankovsky said.
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