Weekly Real Estate News
GRAND RAPIDS, Mich., Oct. 28, 2026 — Northpointe Bancshares has signed a definitive agreement to sell its distributed retail and consumer-direct mortgage origination channels to CMG Mortgage Inc., moving the proposed transaction beyond last week’s nonbinding letter of intent and disclosing a production-based payment arrangement.
Under the agreement announced Wednesday, CMG will pay Northpointe 15 basis points, or 0.15%, on first-lien mortgage originations closed through the transferred channels through December 31, 2028. CMG will also assume associated leases where possible. The parties entered into the purchase and lease-assumption agreement on October 26, and expect to complete the transaction by November 30, 2026, subject to customary closing conditions.
The sale has not closed. Northpointe did not disclose a fixed aggregate purchase price, the number of employees or loan officers who may transfer, or how many branches or leases will ultimately be assumed.
What changed since Northpointe’s original announcement
In its October 20 third-quarter earnings announcement, Northpointe said it planned to exit the distributed retail and consumer-direct origination channels and had signed a nonbinding letter of intent with CMG Financial and its affiliates. At that stage, the companies had not reached a definitive agreement or publicly specified the compensation formula. WRE News reported the proposed sale on October 21.
Wednesday’s disclosure advances that proposal in three ways: the parties now have an executed purchase and lease-assumption agreement; compensation is tied to qualifying mortgage production through the end of 2028; and the companies have set a more specific anticipated closing date of November 30. None of those developments establishes that the transfer has been completed.
How the 15-basis-point payment works
Northpointe’s compensation is tied to first-lien loans closed through the affected channels, rather than a disclosed upfront lump-sum purchase price. At 0.15%, the formula equates to $1,500 per $1 million in eligible closed first-lien originations. That is an arithmetic illustration, not a forecast of actual consideration.
The amount Northpointe ultimately receives will depend on qualifying production during the stated period. The announcement does not specify expected volumes, a minimum payment, or the eventual total value of the transaction.
The agreement also provides for CMG to assume leases associated with the mortgage origination channels where possible. The announcement does not identify individual offices, lease terms or how many locations will be retained.
Why the transaction matters for mortgage lenders
For CMG, the proposed acquisition offers an opportunity to add distribution capacity in retail mortgage lending and consumer-direct originations. For Northpointe, the transaction is part of a strategic retreat from those channels as the bank focuses on other lending and deposit businesses.
Northpointe said in its October 20 earnings release that it expected restructuring charges of $6 million to $7 million, with most anticipated in the fourth quarter. Those charges were previously disclosed and are not newly announced transaction consideration. The bank also said loans already in process would continue to close and that it would support affected team members.
The companies have not publicly confirmed employee transfers, specific branch decisions, lender licensing changes or a completed operational integration. Those questions remain important for originators and borrowers but should not be treated as settled.
Next steps
The agreement contains customary representations, warranties, covenants, closing conditions and termination rights. The companies currently target November 30 for completion, but that is an expectation rather than a guaranteed closing date.
Further disclosures may clarify which offices and employees are included and how the production-based payments will be calculated in practice. Until then, the principal confirmed development is the conversion of the previously announced proposal into a definitive agreement.
Simple Content Summary
Northpointe Bancshares and CMG Mortgage signed a definitive agreement October 26, 2026, to transfer Northpointe’s distributed retail and consumer-direct mortgage channels. CMG will pay Northpointe 0.15% on qualifying first-lien originations closed through December 31, 2028, and assume associated leases where possible. The companies expect a November 30 closing, but the sale is not complete. The agreement advances a nonbinding proposal disclosed October 20.
Sources: Northpointe Bancshares announcement, October 28, 2026; Northpointe third-quarter earnings release, October 20, 2026. Featured photo: Charles Nouwen / Unsplash (illustrative; not a Northpointe or CMG facility).
