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National mortgage lender and servicer Planet Home Lending LLC has entered into an agreement to acquire certain assets of the delegated correspondent channel of Homepoint Financial Corp., a mortgage originator and servicer and a subsidiary of Homepoint 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’s president of lending, said lenders served by both companies will benefit from consolidation in 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," Bosley said. "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 the company is proud of the 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,” Newman said.
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," Dubeck said.
The deal is expected to close in the second quarter of 2022, subject to customary closing conditions.