Northpointe Bank plans to exit distributed retail and consumer direct mortgage origination and transition those teams to CMG Financial, with management saying production could no longer support the overhead required to operate the business.
The proposed move would give CMG another opportunity to expand through an established origination team while Northpointe directs more resources toward financing other mortgage lenders.
Northpointe Bancshares, the Grand Rapids, Michigan-based bank’s parent, announced the proposed transaction Oct. 20. The companies have signed a nonbinding letter of intent and are targeting completion by year-end, subject to due diligence, a definitive agreement, and customary closing conditions. Northpointe said loans already in process will continue closing.
Production Couldn’t Support The Platform
On Northpointe’s Oct. 21 earnings call, Chairman and CEO Chuck Williams described a business that had reached the limits of further efficiency gains.
“The volumes could no longer carry the infrastructure overhead,” Williams said.
President Kevin Comps said residential mortgage originations declined 26% from the preceding quarter, with similar decreases in locks and applications. Competition for production also squeezed gain-on-sale margins.
CFO Brad Howes projected $50 million–$55 million in annualized expense savings, primarily from commissions, salaries, and benefits, with additional reductions in occupancy, technology, professional fees, marketing, and other expenses. Management expects the savings to outweigh the revenue lost through the exit.
For originators, the transaction centers on where their teams will operate. Howes said the proposed arrangement primarily involves the sale and transition of teams, rather than loans, servicing rights, or other material assets.
A Multistate Production Footprint
An Oct. 26 Modex report lists Northpointe with 115 producing loan officers, 165 total loan officers, and 20 branches. The platform records approximately $2.25 billion across 5,588 loans associated with the bank during its November 2025–October 2026 reporting window.
That activity included approximately $1.08 billion in purchase loans and $1.07 billion in refinances. Kentucky was Northpointe’s largest individually listed state market by dollar volume, at $294 million, followed by Florida at $226.3 million, Colorado at $198.6 million, and Michigan at $181.8 million.
The bank-level figures illustrate Northpointe’s production footprint; they do not isolate the channels covered by the proposed transaction or establish how much business would move to CMG. northpointe-bank-nmls-447490
Approximately 337 positions across Northpointe’s mortgage operations would be affected. CMG is expected to offer employment to many affected employees.
The company estimates $6 million–$7 million in restructuring charges, primarily severance and employee transition expenses, including an approximately $800,000 impairment tied to a previous mortgage team acquisition.
CMG Has Followed This Path Before
The proposed transition follows previous CMG deals that moved retail originators onto its platform while the sellers retained other mortgage businesses.
In 2024, CMG acquired Norcom Mortgage’s retail operation, adding 25 branches while Norcom focused on its wholesale platform, TPO GO. CMG also acquired Homebridge’s retail business in 2023, a transaction encompassing 180 branches across more than 30 states. Homebridge retained its wholesale divisions.
Northpointe’s proposed deal would extend that approach: CMG gains an opportunity to retain established producers and referral relationships, while the seller reduces the cost of running a separate origination platform.
Financing Lenders Remains A Growth Business
Northpointe’s Mortgage Purchase Program, which provides funding to mortgage originators, expanded during the same quarter its own residential production contracted.
Program balances increased $262.7 million from the preceding quarter. Northpointe identified the program, specialty servicing, and digital banking among the businesses it intends to prioritize.
Comps said on the earnings call that Northpointe added four program clients representing $185 million in additional capacity and increased facilities for three existing clients by another $100 million.
That puts the bank on a different side of the same production equation. Northpointe is seeking to remove the expense of maintaining its own retail origination channels while expanding its role funding other lenders. For its loan officers and branch leaders, the proposed CMG transition would determine the platform supporting their next loans, and the purchase relationships they bring with them.
