California-based CMG Mortgage, Inc. struck a deal to acquire the retail division of Homebridge Financial Services, the companies announced on Monday. The financial terms of the transaction were not disclosed.
CMG Mortgage, which claims it originated more than $19 billion in 2022, said the M&A deal seeks to increase its footprint on the retail lending business.
According to Inside Mortgage Finance, the company was the 27th-largest mortgage lender in the country in 2022 by volume, but originations declined 32% year over year. Regarding the retail channel, the company originated about $9 billion in 2022, down 36%, per IMF estimates.
The lender’s CEO Christopher George, who founded the company in 1993, said in a statement that the companies, both privately held, will together create “meaningful opportunities for innovation and growth.”
New Jersey-based Homebridge says it originated $12 billion in 2022. It has more than 1,600 associates throughout the United States and more than 180 retail branches. Following the acquisition, the company will retain its wholesale division. Homebridge has two wholesale divisions: Homebridge Wholesale and REMN Wholesale.
Per IMF data, the company was the 39th-largest U.S. mortgage lender by volume last year, when volumes dropped about 49%. The lender originated approximately $8 billion through its retail channel in 2022, down 44.5%.
According to the companies, Peter Norden, CEO of Homebridge, will act as executive advisor to CMG’s retail division “to ensure a successful transition.”
“Giving our retail sales team the opportunity to join forces with Chris George and his incredible team will position everyone for success in an ever-changing market,” Norden said.
Homebridge was set to merge with Mike Cagney‘s Figure Technologies last year, but the deal fell apart just 10 months after the announcement was made.
According to the companies, Figure would bring a blockchain tech platform to the merged company, doubling the lender’s capacity to fulfill loans. Meanwhile, Homebridge would add 150,000 customers.
However, things did not happen as expected. Regulatory approval on the deal did not occur quickly, and the demand for new technologies was too strong to wait.
