The acquisition of an East Coast player by a West Coast mortgage banker will create a company that will rank as one of the country’s 15 largest home lenders.
Mortgage Master Inc. was founded in 1988 by Danish immigrant Leif Thomsen. By 2003, the company was originating over $3 billion — putting $10 million in Thomsen’s pockets and earning him the title of Mortgage Daily Icon of 2003.
By 2011, however, Thomsen had handed off the reins to the Walpole, Mass.-based company and was spending more time traveling with his family.
Last year, Mortgage Master originated $6.2 billion in residential loans — making it an attractive target for an acquisition.
Apparently loanDepot LLC smelled the opportunity.
On Thursday, Foothill Ranch, Calif.-based loanDepot announced that it reached an agreement to acquire Mortgage Master.
The deal is scheduled to close early next year.
“This partnership empowers us to do this while creating substantial growth opportunity for the Mortgage Master brand,” Thomsen said in the news release. “We are looking forward to working alongside the great leadership throughout loanDepot and working towards a shared vision on the future of the business.”
Combined mortgage production as of October from the two firms was $1.75 billion — creating a company that originates more than $20 billion annually.
Based on data maintained by Mortgage Daily, the combined entity would have been the 14th largest mortgage lender in the nation last year.
After the deal is consummated, the resulting entity will have 3,700 employees — including 3,000 from loanDepot and 700 from Mortgage Master. It will operate 130 retail lending branches and four web production centers.
Three retail brands — loanDepot.com, imortgage, and Mortgage Master — will be maintained. In addition, the LDWholesale brand will also continue.
Thomsen and Mortgage Master President Paul Anastos will continue to lead the Mortgage Master brand, the statement said.
“The combined company will position us to accelerate our expansion in the Northeast while continuing to build our national consumer lending businesses offering both mortgage and nonmortgage lending products,” loanDepot Chairman and Chief Executive Officer Anthony Hsieh said in the announcement.
