Dallas-based Mr. Cooper Group Inc. (NASDAQ: COOP) has acquired all outstanding shares the wholesale lender Home Point Capital Inc. (NASDAQ: HMPT) for approximately $324 million in cash.
As part of the transaction, Mr. Cooper will assume $500 million in outstanding Home Point 5% senior notes which are due in February 2026. Mr. Cooper added it would shut down Home Point’s operations after the transaction closes and the acquired company’s customers are onboarded.
Mr. Cooper added that the acquisition of Home Point’s $84 billion servicing portfolio is expected to contribute to a return on equity with estimated 10% accretion to operating earnings in first year.
“This acquisition is consistent with our strategy of growing our customer base, deploying our capital with a focus on attractive risk-adjusted returns, and maintaining a very strong balance sheet,” said Mr. Cooper Chairman and CEO Jay Bray. “Home Point has amassed an impressive servicing portfolio, consisting of conventional loans to borrowers with high FICO scores, low coupons, and strong equity cushions. We look forward to welcoming these customers to Mr. Cooper and providing them with a high-quality, personalized, and friction-free experience.”
The transaction comes one month after the Ann Arbor, Michigan-based Homepoint announced an agreement to sell certain assets of its wholesale originations channel to The Loan Store Inc., a national wholesale lender headquartered in Tucson, Arizona.
“Due to the tremendous effort of our associates and the support of our broker partners, we have built Homepoint from a startup to the third-largest wholesale lender,” said Willie Newman, President and CEO of Homepoint. “After careful consideration, and in light of current market conditions, we have decided to sell our wholesale originations business to The Loan Store. We believe this is the best decision for our company to continue to deliver value to Home Point shareholders.”
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