Several mortgage banking firms are being acquired, including two that are being picked up by banks. Two smaller Louisiana firms are merging, while a significant player is being purchased by another.
Shellpoint Partners LLC has agreed to be acquired by New Residential Investment Corp. for $190 million, a Nov. 29 statement said.
The acquisition of New York-based Shellpoint is expected to be completed in the first-half of next year. The deal is subject to settlements on mortgage servicing rights on approximately $8 billion in government-sponsored enterprise loans.
Shellpoint, the parent of New Penn Financial LLC, reports a $50 billion servicing portfolio and annual originations of roughly $6.6 billion. New Penn President and Chief Executive Officer Jerry Schiano apparently prepared for such a sale with the May 2016 founding of Spring EQ — a home-equity lender.
The Capital Corps LLC was launched on Nov. 3, a news release said. The Irvine, California-based company seeks to meaningfully expand access to capital to the over $100 billion non-traditional prime borrowers not being adequately serviced by banks.
“The Capital Corps will serve non-traditional prime borrowers by returning to more traditional methods of underwriting residential real estate focusing on the 5-C’s of credit — including a borrower’s character,” the statement said. “In its credit decisions, The Capital Corps will place special emphasis on the borrower’s character as opposed to narrow service-bureau-driven credit analytics deployed by banks during the recent credit crisis.”
Ten days later, The Capital Corps
disclosed a strategic investment in San Ramon, California-based Commerce Home Mortgage. That announcement projected that The Capital Corps’ investment is expected to push its annual originations past $2 billion next year.
Columbia, South Carolina-based
Homeowners Mortgage has been acquired by Towne Mortgage Co., a press release last month stated. Homeowners will add around $0.24 billion to Towne’s $1 billion in annual originations.
Englewood Mortgage Co. was recently acquired by
Denver-based First Western Trust, according to a news release. Greenwood, Colorado-based Englewood was established in 1987 and has 41 employees.
In Wayzata, Minnesota, TCF National Bank recently announced a definitive agreement to acquire
Rubicon Mortgage Advisors LLC. The purchase of the 34-employee firm, which was founded in 2006, is expected to close by the end of this month. Terms of the transaction were not disclosed.
A Dec. 8 statement said that
Pineville, Louisiana-based Public Service Mortgage Inc. and Alexandria, Louisiana-based Prestige Mortgage Lending LLC have agreed to merge operations. The combined company will operate from Pineville as Endurance Mortgage. The merger is expected to be completed early next year.
