Planet Home Lending, LLC has reached a definitive agreement to acquire certain assets of the delegated correspondent channel of Home Point Financial Corporation (Homepoint), a mortgage originator, servicer, and a subsidiary of Home Point Capital Inc.
"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."
John Bosley, Planet Home Lending President of Lending, said correspondent lenders served by both companies will benefit from the consolidation in such 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," said Bosley. "Working with a single long-term, strong partner reduces risk and allows lenders to gain execution and operational efficiencies."
Homepoint President and CEO Willie Newman said: "We are very proud of our growth and achievements in the correspondent channel, and the best-in-class team that supports it. This strategic move is the right opportunity for Homepoint at the right time, as it enables us 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."
Homepoint generated $20.7 billion in delegated correspondent volume in 2021, making it the 13th largest correspondent lender, according to Inside Mortgage Finance data. Planet Home Lending is ranked 12th with $22.8 billion in correspondent volume.
"The acquisition will also contribute to the growth of Planet's servicing portfolio, which is now at $54 billion," said Dubeck. Planet will combine the best practices of both entities to create a streamlined customer experience delivered via Planet's CORE Seller platform. The deal is expected to close in the second quarter of 2022, subject to customary closing conditions.