How Servant HR helped Stonegate Mortgage grow from 18 to 686 employees through strong, values-aligned HR during a national crisis.
Stonegate Mortgage was founded in the mid-2000s as a mortgage brokerage. Barb Cutillo, employee number two, served as Chief Financial Officer and Head of HR, overseeing all back-office operations. What began as a small team of 3 employees would eventually grow to over 1300 employees in 34 states across the U.S. The company completed an IPO in 2013 and then was acquired and taken private approximately 4 years later.
STONEGATE MORTGAGE PROFILE
The Company: Indianapolis-based mortgage company founded mid-2000s; grew rapidly after the 2008 financial crisis
The Challenge: Scaling from 18 to 686 employees across multiple states without the in-house expertise to manage HR, legal risk, benefits, and multi-state compliance
The Partnership: 5 – 6 years with Servant HR providing HR strategy, legal advisory, benefits negotiation, payroll, and multi-state expansion support
The Outcome: Compliant growth through a turbulent industry period; successful acquisition; seamless transition to in-house HR when they outgrew the partnership
“They were very responsive and supportive and nimble. As an entrepreneurial venture, you need to move quickly – and they helped us do that.” — Barbara Cutillo, Former CFO, Stonegate Mortgage
THE CHALLENGE
Founded just before the 2008 financial crisis, Stonegate faced a unique situation. Because the company focused on responsible lending and maintained ethical practices, they were well-positioned to grow when other mortgage companies collapsed. But rapid growth brought complex challenges: multi-state compliance, employee handbook requirements across jurisdictions, insurance negotiations, and the ever-present legal risks of HR management.
“There’s never just one person who can be all the things you need from an HR perspective,” says Barb. “We knew we were growing and needed an HR team with robust skillsets. Operationally, however, we were running lean – so it made sense to look for a strong HR partner.”
FROM A CFO's PERSPECTIVE...
… the partnership made clear financial sense:
Risk Management: Employment legal issues carry massive downside risk. Having qualified advisors who knew what they were talking about was worth the investment.
Multi-State Compliance: As Stonegate expanded to new states, the risk of payroll errors or handbook violations in different jurisdictions was too significant to manage without expert help.
Trust Over Promises: Unlike other benefit brokers who showed up promising much and delivering little, Servant HR gave straight answers and honest guidance – all the time, every time.
“It justified the cost completely,” says Barb. “It was worth it to spend the money to make sure that we had competent talent in those areas and good advisors who knew what they were talking about.”
THE SOLUTION
For Stonegate, the partner that made the most sense was Servant HR.
“We knew them already,” says Barb. “We knew their reputation, and we knew they were someone we could trust, so choosing them was an easy, no-brainer decision.”
What made the decision even easier was the unique combination of expertise the Servant HR team brought: proven experience negotiating with health insurance companies, a strong legal background, and HR and payroll expertise.
Even more, because Stonegate did business with the government, they needed a special type of HR partnership that allowed them to keep their own separate employer status and EIN. Servant HR knew exactly how to create that – all while still providing comprehensive support.
PARTNERSHIP IN ACTION
Over approximately five to six years of partnership, Servant HR supported Stonegate through significant growth:
Rapid Expansion Support: When Stonegate wanted to open offices in new states, Servant HR responded immediately with guidance on requirements and handled all the employee-related administrative filings.
Employee Relations: When sensitive issues arose, Servant HR provided independent investigation support and professional handling.
Employee Communication: Servant HR handled front-end communication with new hires and existing employees, ensuring questions about insurance, payroll, and benefits were always answered promptly.
Compliance and Risk Management: After the financial crisis ushered in rapid and dramatic changes to industry and employment practices, Servant HR helped Stonegate avoid liability with potential employee issues.
Personalized Service: Unlike dealing with large providers like ADP or Paychex, working with Servant HR meant direct access to people who knew the company and responded quickly.
CULTURAL ALIGNMENT
Stonegate’s ethical approach to business meant that they needed an HR partner who understood that approach. “We were focused on growing,” says Barb. “Servant HR understood our values, and they helped keep us tethered to them even as we were experiencing rapid growth.”
Even more, Servant HR didn’t just provide services. They worked to help Stonegate develop their own HR strategy – something that proved incredibly useful when Stonegate grew large enough to move HR in house.
THE TRANSITION
When Stonegate started with Servant HR, they had just 18 employees. By the time they grew large enough to create their own HR team, that number had grown to 686. At that size, any type of transition can feel and become complex, especially when you’re dealing with employee benefits and payroll. Stonegate knew that Servant HR could have just handed over the reins and let their in-house HR team navigate the transition on their own, but instead, Servant HR made it seamless.
“They remained available for questions and support, demonstrating that the relationship was truly about partnership, not just transactions,” says Barb. “It wasn’t like, ‘Hey, we’re done, don’t ever call us again,’ It was like, ‘Hey, if you still have questions, we’re here.’ And they were.”
"Servant HR was a true partner of ours as we expanded our operations across the U.S. Everyone had a friendly attitude and desire to help as we expanded our workforce and capabilities. Servant HR helped us achieve our goals to be a rapidly growing, respected leader in our industry."
