AFR Announces Sale to Proprietary Capital

Parsippany, New Jersey-based American Financial Resources, Inc. (AFR), has announced a definitive agreement to sell 100% of the company to an investment group led by Proprietary Capital, LLC, subject to state and regulatory approvals. Founded in 1997, Proprietary Capital is a fund manager based in Denver that provides an institutional platform for investors to gain exposure to the U.S. residential-mortgage market and housing-related assets.

AFR, founded in 1997 by the company’s current Chief Administrative Officer Corey Dubnoff, is a full-service mortgage banking company with Direct, Wholesale, and Correspondent Lending Divisions that offer products ranging from agency, non-agency, and government lending with a niche in construction and manufactured home mortgage programs. AFR is also a manufactured home lender amongst wholesalers and is a leading FHA 203(k) lender for sponsored originations and an innovator in construction and renovation lending. The company utilizes the latest technology and delivers educational resources to correspondent lenders, mortgage brokers, loan originators and consumers.

"Today is a historic day for AFR,” said Rich Dubnoff, CEO of AFR. “With the support and investment of Proprietary Capital, AFR will begin a new phase of rapid growth that will directly benefit our borrowers, wholesale and correspondent clients, and employees."

Since its inception, Proprietary Capital has provided an institutional platform for investors looking to gain exposure and receive excess returns within various segments of the U.S. residential-mortgage market.

STRATMOR Group served as the transaction advisor to AFR.

"With the acquisition of AFR, we will build on our already strong mortgage platform,” noted Craig Cohen, Managing Member of Proprietary Capital. “With the addition of AFR's robust operational platform, loyal customer base, long-term dedicated employees, and their breadth of products and services, we will catapult our growth for many years to come."

AFR was recently named by the U.S. Department of Agriculture (USDA) as a top Manufactured Wholesale Partner. The USDA acknowledged the pressing need for affordable housing and emphasized the significance of manufactured homes as a viable and economical option. AFR expresses deep gratitude to the USDA, local third-party originators, and the entire AFR Team for their invaluable contributions. The recognition from the USDA underscores the crucial role played by AFR in advancing wholesale manufactured home lending and making homeownership a reality for more individuals.

"It is our sincere conviction that by embracing factory-built housing, we can address the critical issue of affordable housing while ensuring that everyone has access to a safe and comfortable place to call home,” said Christopher Guerin, AFR's EVP of Origination and Business Development. “We are committed to promoting this vision and partnering with stakeholders who share our passion for creating sustainable and inclusive communities."