Dallas-based mortgage loan servicing company Mr. Cooper Group will acquire Ann Arbor, Michigan-based Home Point Capital Inc. in a deal valued at roughly $324 million in cash.
Home Point provides mortgage servicing on single-family residences throughout the United States.
“This acquisition is consistent with our strategy of growing our customer base, deploying our capital with a focus on attractive risk-adjusted returns, and maintaining a very strong balance sheet,” Mr. Cooper Chairman and CEO Jay Bray said in a statement. “Home Point has amassed an impressive servicing portfolio, consisting of conventional loans to borrowers with high FICO scores, low coupons, and strong equity cushions. We look forward to welcoming these customers to Mr. Cooper and providing them with a high-quality, personalized, and friction-free experience.”
Mr. Cooper said that as part of the transaction, it will assume $500 million in outstanding Home Point 5% senior notes that are due in February 2026.
The transaction is expected to close in the third quarter this year, subject to customary closing conditions including receipt of regulatory approvals.
After the onboarding of Home Point customers and the closing of the transaction, Mr. Cooper said it will shut down the remaining Home Point operations.
“Thanks to our strong operations and technology, we have the capacity to onboard this portfolio, with a focus on ensuring a positive customer experience. The senior notes we’re assuming from Home Point serve as a low-cost source of funding and contribute to an attractive rate of return on this transaction,” Mr. Cooper CFO Kurt Johnson said in a statement.
Wachtell, Lipton, Rosen & Katz and Simpson Thacher & Bartlett LLP acted as legal advisors to Mr. Cooper. Kirkland & Ellis acted as legal advisor to Home Point and Houlihan Lokey acted as financial advisor to Home Point.
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