Caliber Completes Banc of California Acquisition

Irving, Texas-based lender Caliber Home Loans Inc. announced on Friday that it has completed its acquisition of Banc Home Loans. Caliber is the nation’s fourth largest non-bank lender, with over $40 billion in originations in 2016 and a servicing portfolio of over $110 billion. Banc Home Loans is the mortgage banking division of Banc of California, N.A.

"Caliber is delighted to announce the acquisition of Banc Home Loans, as we build on our significant growth trends and continue to expand our footprint nationally," said Sanjiv Das, Chief Executive Officer of Caliber.  "As part of this strategy, we will focus on strategic opportunities that present significant long-term value. This transaction will enhance Caliber's presence in the attractive California and Northwest markets. Most importantly, Banc Home Loans shares the Caliber vision of customer-focused values.  With this acquisition, we look forward to continuing to address the unique financing needs of homeowners around the country."

The addition of Banc Home Loans will bring Caliber’s sales force up to over 1800, with 340 sales location across the country.

The sale begun earlier this month, when Caliber purchased the full-service bank's home loans division for $25 million in cash. For an additional $36 million, Caliber has also purchased the mortgage servicing rights on about $3.8 billion in unpaid balances of conventional mortgages. Banc of California took a $3.5 million loss on the transaction. The sale will allow Banc of California to focus more on its commercial banking efforts, according to Hugh Boyle, Interim Chief Executive of Banc of California.

“The sale of the mortgage business will align Banc of California’s business profile with that of a more traditional spread-based lender by significantly reducing the bank’s reliance on mortgage banking gain on sale revenue, lowering the risk of MSR valuation changes impacting earnings, streamlining the bank’s operations, and allowing the bank to redeploy capital to our commercial banking business,” Boyle said said.