In one of the first major mergers for the mortgage industry for 2017, Home Point Financial Corp., a national, multichannel originator and servicer, is acquiring Stonegate Mortgage Corp., which originates, finances and services agency and non-agency loans through a network of retail offices and third-party originators, for about $211 million.
The all-cash transaction, which is still subject to the usual regulatory approvals, as well as approval by Stonegate Mortgage’s stockholders, is expected to close by the end of the second quarter.
Under the terms of the agreement, Stonegate’s stockholders will receive $8.00 per share.
Through the acquisition, Home Point, which is based in Ann Arbor, Mich., will gain full national coverage across all channels of mortgage origination, as well as vertical integration across the mortgage value chain, says Willie Newman, CEO of Home Point, in a statement.
“We are very excited about the opportunity to work together with the Stonegate Mortgage team to accelerate the build out of Home Point Financial,” Newman says.
Indianapolis-based Stonegate reported decent third-quarter earnings. The company’s total originations hit $2.62 billion, up 12% from the second quarter. Its total origination revenues reached $51.8 million, up 35% from the prior quarter.