Newtown Savings Bank Purchases Sirianni Mortgage Corporation

Newtown Savings Bank announced this week that it has purchased Sirianni Mortgage Corporation of Danbury.

“We are constantly looking for new ways to improve the service we provide to the community. Sirianni Mortgage will add a diversified product menu that will improve the bank’s ability to reach a wider variety of home owners and to assist more people in becoming home owners,” said John Martocci, chairman and CEO of the bank.

Sirianni, located on Federal Road in Danbury, was a wholly owned subsidiary of Sleepy Hollow Bank of Westchester County, New York.

“They were one of the original pioneers of the mortgage brokering business, and continue to be an established and highly respected mortgage loan originator in the Danbury market,” Mr Martocci said.

Newtown Savings Bank has more than $560 million in assets and is one of the largest local home mortgage lenders in the area. During 2003 the bank originated 2,041 mortgage loans totaling $371 million and 893 home equity lines of credit aggregating more than $65 million.

“Sirianni brings to us loans that are more flexible than standard bank products,” Mr Martocci said. “We will have a bigger variety of products and an outlet for those products. We will be able to give our customers a bigger selection.”

In addition to the home financing options currently available at the bank, the bank now will be able to offer a variety of other products including first-time home buyer programs, no income verification loans, 100 percent financing, interest only loans, multiple payment option loans, and less than perfect credit loans, a larger selection of jumbo mortgages.

NSB purchased Sirianni for $200,000 on February 29. All 12 employees of Sirianni, including its six loan representatives, will become part of NSB, and will move into office space behind the bank’s branch on Main Street in Danbury.

Mr Martocci said Newtown Savings Bank previously had one loan representative, although each of the nine branches were able to take mortgage applications. “In effect, we are doubling our size,” he said.

“Sirianni Mortgage Corporation will benefit by the fast local approval process at the bank as well as the bank’s homeowner and builder construction lending arrangements,” said Tom Lutz, vice president of Sirianni Mortgage Corporation. “The affiliation now makes us part of an organization that offers a wide variety of banking products including checking accounts and deposit products as well as an experienced commercial lending department that will be available to our customers.”

The new subsidiary will report to Margaret Powers, NSB senior vice president.

“We look forward to adding the expertise of Tom and the experienced brokers and administrative staff to our team,” she said. “The combined average sales and service experience for each member of this newly formed mortgage team will be over 12 years in the residential lending industry. This demonstrates not only loyalty but also a strong knowledge base in helping people finance their home purchases. We are excited about this combination and the ability it gives us to become an even stronger lender in the future,” she said.

Although NSB has nearly $400 million in loans, $350 million have been sold to Fannie Mae. Despite the sale, the bank still services the loans.

“We always keep the customer,” Mr Martocci said. “That’s one thing that distinguishes us. We continue to take care of the taxes, the insurance, the escrow.”

Newtown Savings Bank, a mutual savings bank, is headquartered on Main Street in Newtown. It has branch offices at Sand Hill Plaza in Newtown, and also in Bethel, Danbury, Monroe, Southbury, Trumbull and Trumbull.