Finance of America Companies, an end-to-end lending and services platform, today announced that its mortgage originations subsidiary, Finance of America Mortgage (FAM), intends to acquire certain assets of Parkside Lending LLC, a wholesale, retail, and correspondent lender that serves the needs of mortgage professionals, for approximately $40 million. The combination, expected to close in the second quarter of 2021, is intended to strategically increase FAM’s third-party origination (TPO) coverage by more than 1,000 seasoned brokers with little customer overlap, and it puts FAM’s wholesale business on the path to becoming a top-five performer in the segment.
Since its formation in 2013, Finance of America has successfully acquired, integrated, expanded, and optimized 16 companies in industries spanning from originations and lender services to capital markets. Most recently, the company launched its home improvement vertical with the acquisition of Renovate America’s industry-leading home financing product, Benji. The company expects to remain acquisitive in areas that are complementary to its existing lines of business, where it identifies accretive market opportunities that align with its vision and present the potential to create efficiencies and drive profitable growth.
Parkside Lending is a full-service mortgage company that was founded in 2004 with a mission of making a positive difference for mortgage professionals and their customers. The company ranks as the No. 16 largest wholesale lender in the country based on 2020 volume and has a 16-year track record of managing through credit and liquidity cycles with a scalable platform designed to maximize market opportunities, says CEO Patricia Cook.
“This transaction aligns with our proven strategy of advancing our growth priorities through the acquisition of highly complementary businesses where we can leverage our platform and resources to drive enhanced operating and financial performance,” Cook said. “Parkside Lending’s philosophy is similar to our own in that the firm is able to pivot between products to maximize profits or minimize risk as market conditions shift. This approach should prove powerful in terms of fueling origination opportunities as we introduce our products to the firm’s vast network of mortgage professionals.”
Bill Dallas, President of FAM, added, “Our TPO business is a part of our long-term growth strategy. We pride ourselves on offering the widest range of products and tailored solutions designed to meet the needs of our valued broker partners and their clients during any economic and home buying cycle. We’re excited about the enhanced scale this transaction provides as it will materially increase our production volume and enable us to distribute a larger number of proprietary products in the future, propelling continued growth. We look forward to welcoming Parkside Lending’s highly talented team into the family and working together to capitalize on more opportunities to deliver innovative financial solutions that meet the needs of a broad range of consumers.”
Matt Ostrander, CEO of Parkside Lending, said, “We’re excited to be joining forces, and we’re confident that the additional scale we bring to the table combined with Finance of America’s innovative suite of products and capital markets expertise will enhance the company’s position as a top wholesale originator. We look forward to working together to advance Finance of America’s strategic growth priorities."