Deal To Purchase Home Point Capital Delayed

Mr. Cooper Group's offer to purchase Home Point Capital is being extended until July 31. 

The offer to purchase the company for approximately $324 million in cash was supposed to close by July 21. 

As of that date, approximately 136,198,462 shares has been tendered and not validly withdrawn, representing approximately 98.3% of the outstanding shares. 

In May, Mr. Cooper Group Inc. announced as part of the deal, it will assume $500 million in outstanding Home Point 5% senior notes, which are due in February 2026. The transaction is expected to close in the third quarter of 2023, subject to customary closing conditions and receiving all regulatory approvals. 

Once Home Point customers have fully transitioned to Mr. Cooper and when the transaction closes, the remaining Home Point operations will be shut down, Mr. Cooper said.

Home Point Capital, which operates Home Point Financial, was the third-largest U.S. mortgage lender by origination volume for 2022.

Mr. Cooper Group Inc. reported first-quarter net income of $37 million, or $0.52 per diluted share, up from $1 million, or 1 cent per diluted share, in the fourth quarter of 2022. Total revenue was $330 million in the first quarter, up 9% from $303 million in the previous quarter.

The unpaid principal balance (UPB) of its mortgage servicing rights was $413 million in the first quarter, up just 0.5% from $411 million in the previous quarter.

Mr. Cooper Group is scheduled to release its second-quarter earnings at 10 a.m., July 26.