Northpointe Bank Plans Exit From Retail Mortgage Channels, Proposed Sale to CMG Financial

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Northpointe Bank plans to leave two mortgage origination channels and is negotiating a potential sale of those operations to CMG Financial, a significant shift in the lender’s business model that could affect its production teams and referral relationships.

The bank’s parent, Northpointe Bancshares (NYSE: NPB), announced the plan on October 20, 2026, alongside its third-quarter earnings. According to a Form 8-K filed with the Securities and Exchange Commission, the boards of Northpointe Bancshares and Northpointe Bank approved the exit plan on October 18.

The proposed transaction is not a completed acquisition. Northpointe and CMG Financial and its affiliates have signed a nonbinding letter of intent. Due diligence, a definitive agreement and customary closing conditions remain outstanding. Northpointe anticipates a possible closing by the end of 2026, but the deal could change or fail to close.

Two mortgage channels slated for exit

The plan covers Northpointe’s distributed retail and consumer-direct mortgage origination channels. The company said it will continue closing loans already in process and provide support to affected team members. It has not publicly specified a transaction price or the number of employees and branches that could be transferred or affected.

Northpointe estimates restructuring charges of $6 million to $7 million, with most expected in the fourth quarter. The charges principally relate to severance and employee transition, with an impairment component described in the SEC filing. These are estimated costs, not a disclosed purchase price.

Northpointe Chief Executive Chuck Williams said the bank wants to concentrate resources in areas where it believes it has stronger competitive advantages. Its ongoing priorities include the Mortgage Purchase Program, specialty servicing and digital banking.

What the move means for CMG and mortgage originators

If a definitive deal is signed and completed, CMG could add mortgage production operations and personnel. But the companies have not disclosed which employees, branches or customer relationships would transfer. It would be premature to describe the acquisition as final or to assume all Northpointe originators will join CMG.

The proposed sale is another example of lenders reevaluating the costs of competing in retail and direct-to-consumer origination while maintaining businesses that use their balance sheets, servicing capabilities or institutional relationships.

WRE News previously covered CMG’s acquisition of Norcom Mortgage’s retail assets. That earlier transaction is separate from Northpointe’s newly proposed sale.

Earnings provide context for the decision

Northpointe reported third-quarter net income attributable to common shareholders of $13.9 million, compared with $21.3 million in the second quarter. Its Mortgage Purchase Program balances increased $262.7 million during the quarter, and the bank reported a $100.4 million increase in its All-in-One home-equity loan balances.

The company also reported a $3.1 million operational loss associated with an isolated deposit fraud incident. That expense and changes in loan and servicing-right valuations affected quarterly results; the company did not say the fraud caused the decision to exit the two mortgage origination channels.

Northpointe’s October 21 earnings call was expected to provide additional information. The company’s filings caution that the sale may be delayed, modified or terminated, and that it may pursue a wind-down or another alternative if the transaction does not proceed.

Sources: Northpointe Bancshares third-quarter announcement, October 20, 2026; SEC Form 8-K.