Homepoint, the third-largest wholesale lender by origination volume
for the year ending December 31, 2022 according to Inside Mortgage
Finance, today announced it has entered into a definitive agreement
to sell certain assets of the company’s 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.”
As a result of this transaction, Homepoint is winding down its
nine-year tenure as a direct participant in the originations
market. Homepoint will hold an equity interest in The Loan Store,
enabling the company and its shareholders to participate in The
Loan Store’s potential future success.
Moving forward, Homepoint will continue to strategically manage
its mortgage servicing rights (MSR) asset and balance sheet. The
company expects its high-performing MSR portfolio to continue to
generate significant returns and cash flow over time.
The acquisition supports The Loan Store’s ambitious goals to
scale its loan originations business into a leading national
wholesale mortgage lender. Like Homepoint, The Loan Store operates
solely in the wholesale channel.
Homepoint’s President of Originations, Phil Shoemaker, a
mortgage industry veteran of more than 25 years, will serve as
Chief Executive Officer of The Loan Store. Mark Lefanowicz, the
current CEO of The Loan Store, will move into an Executive Chairman
role on the company’s board.
“I am proud of what we accomplished at Homepoint and thankful
for the experience,” said Phil Shoemaker, President of Originations
at Homepoint. “I’m looking forward to the next chapter at The Loan
Store where we will continue making a positive impact within the
wholesale lending community.”
Founded in 2019, The Loan Store has constructed a platform that
leverages automation to deliver a high level of speed and customer
service while being able to provide consistently competitive
pricing.
“At The Loan Store, we’ve built an efficient platform that
provides what we believe is truly a best-in-class experience for
our partners,” said Brandon Stein, President of The Loan Store.
“Combining that with the visionary leadership of Phil Shoemaker and
a highly regarded sales and operations team, The Loan Store is
well-positioned to sustainably scale our business.”
The transaction is expected to close in the second quarter of
2023, subject to customary closing conditions.
About The Loan StoreFounded in 2019, The Loan
Store, Inc. is a rapidly growing wholesale mortgage company
leveraging efficient processes, modern technology, and decades of
mortgage expertise to create a successful ecosystem for its broker
and correspondent partners. The Loan Store is laser-focused on
being a reputable conventional, jumbo, VA, and Non-QM lender,
aggressively priced across all products for our clients. Led by
industry veterans, we understand the importance of our symbiotic
partnerships with brokers and lenders across the country. The Loan
Store is dedicated to perpetuating its growth through 5-star
service, automated processes, and consistently low rates.
Forward-Looking StatementsThis press release
contains certain “forward-looking statements,” within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. All
statements other than statements of historical fact are
forward-looking statements. Forward-looking statements include, but
are not limited to, statements relating to the future financial
performance of Home Point Capital Inc. (together with its
subsidiaries, “Home Point Capital”), Home Point Capital’s business
prospects and strategy, anticipated financial position, liquidity
and capital needs, the industry in which Home Point Capital
operates and other similar matters. Words such as “anticipates,”
“expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,”
“estimates,” “could,” “would,” “will,” “may,” “can,” “continue,”
“potential,” “should” and the negative of these terms or other
comparable terminology often identify forward-looking statements.
Forward-looking statements are not guarantees of future
performance, are based upon assumptions, and are subject to risks
and uncertainties that could cause actual results to differ
materially from the results contemplated by the forward-looking
statements. Factors, risks, and uncertainties that could cause
actual outcomes and results to be materially different from those
contemplated include, among others: the effects of the COVID-19
pandemic on Home Point Capital’s business; counterparty risk;
competition in the industry in which Home Point Capital operates;
Home Point Capital’s ability to adapt to and implement
technological changes; any failure to attract and retain a highly
skilled workforce, including Home Point Capital’s senior
executives; Home Point Capital’s ability to obtain, maintain,
protect and enforce its intellectual property; any cybersecurity
risks, cyber incidents and technology failures; Home Point
Capital’s failure to deal appropriately with various issues that
may give rise to reputational risk, including legal and regulatory
requirements; and any employment litigation and related unfavorable
publicity. Many of the important factors that will determine these
results are beyond Home Point Capital’s ability to control or
predict. You are cautioned not to put undue reliance on any
forward-looking statements, which speak only as of the date
thereof. Except as otherwise required by law, Home Point Capital
does not assume any obligation to publicly update or release any
revisions to these forward-looking statements to reflect events or
circumstances after the date of such forward-looking statements or
to reflect the occurrence of unanticipated events. You should refer
to the risks and uncertainties listed under the heading “Risk
Factors” in Part I, Item 1A. of Home Point Capital’s Annual Report
on Form 10-K for the fiscal year ended December 31, 2021, as such
risk factors may be amended, supplemented or superseded from time
to time by other reports Home Point Capital files with the
Securities and Exchange Commission, for a discussion of other
important factors that may cause actual results to differ
materially from those expressed or implied by the forward-looking
statements.
Media Contact:Brad Pettiford Director of Public
Relations (734) 356-3092bpettiford@hpfc.com
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