Deal to strengthen firm's position in the delegated correspondent space
Home Point Financial, the country’s 13th largest correspondent lender, has agreed to sell certain assets of its delegated correspondent channel to Planet Home Lending, the firms announced.
"This transaction demonstrates Planet's unwavering commitment to correspondent lending," said Planet Financial Group CEO and president Michael Dubeck. "In a rising rate environment where other correspondent lenders are pulling back, we're reinvesting our funds to seize opportunities during market disruptions to quickly scale up. Intelligent acquisitions like this one bolster our balance sheet and create a growth path going forward."
The transaction, which is anticipated to close in the second quarter of 2022, is expected to contribute to the growth of Planet's servicing portfolio, which is now at $54 billion. Additionally, the company will combine Homepoint's assets to its CORE Seller platform to "create a streamlined customer experience."
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Commenting on the deal, Homepoint president and CEO Willie Newman explained that the move is the "right opportunity" for the company to "further streamline our organizational focus and ensures that our delegated correspondent partners are matched up with another company that shares our principles of offering great service and competitive pricing."
John Bosley, president of lending at Planet Home, said correspondents served by both companies will benefit from the deal amid a volatile market.
"The move to Planet Home Lending will give Homepoint lenders access to niche products, as well as consistent pricing and fast turn times," Bosley said. "Working with a single long-term, strong partner reduces risk and allows lenders to gain execution and operational efficiencies."
In 2021, Planet Home Lending generated $22.8 billion in correspondent volume, while Homepoint posted $20.7 billion in delegated correspondent volume.
