Mr. Cooper confirmed in a statement Wednesday that it has decided to cease its wholesale lending operation.
The statement said Mr. Cooper entered into wholesale lending as part of the Pacific Union Financial, LLC acquisition.
“The Originations team has successfully grown Mr. Cooper into a top 15 lender, resulting from continued growth in both the Direct-to-Consumer and Correspondent channels. As the market has evolved, we’ve increased our focus on our current customers and continue to prioritize investments in their experience to create customers for life,” the company said in a statement.
Mr. Cooper added that it will continue to make an investment in growing its correspondent channel, but the wholesale platform accounted for less than 5% of its total originations volume and “we believe reallocating resources to other segments within originations will help us better meet the needs of our customers today.”
The company added COVID-19 was not a driving force in this decision.
“We were able to find new roles within the company for the majority of our Wholesale team members, shifting them mainly to our direct-to-consumer lending team,” the company said. “We regret that this has impacted a small number of team members especially during this uncertain time.”
Mr. Cooper added that it is working with team members to find them new roles at other organizations or offering them career outplacement services and severance packages.
The company announced the acquisition of Pacific Union Financial in February 2019
“We are pleased to finalize the acquisition of Pacific Union Financial and welcome our new team members, customers and clients to the Mr. Cooper family,” said Jay Bray, Chairman and CEO of Mr. Cooper Group Inc in a prior release. “This acquisition expands our servicing portfolio with the addition of more than 120,000 customers and increases our mortgage lending volume and capabilities.”
Pacific Union was estimated to have a servicing portfolio of nearly $25 billion. Mr. Cooper said in 2019 that annual originations volume potential is estimated in excess of $10 billion with over 80% being purchase loans.