Joseph Panebianco on M&A, mortgage trends, and AnnieMac’s future

HousingWire President Diego Sanchez sat down with CEO Joe Panebianco at HousingWire’s Housing Economic Summit to discuss AnnieMac Home Mortgage’s strategies, mergers and acquisitions, retention efforts, and programs to make homeownership more accessible. Panebianco also shared insights on AnnieMac’s approach to M&A and how programs like Cash2Keys give borrowers a competitive edge.

AnnieMac’s business model and M&A strategy

AnnieMac Home Mortgage focuses on distributed retail. Seventy percent of its business comes from B2B relationships with real estate agents and financial advisors. The company is also active in mergers and acquisitions.

“There are a number of IMBs with phenomenal sales organizations and strong operations teams,” Panebianco said. “But they often lack key components — execution, agency approvals, tech stacks, or capital. A lot of folks exited 2021 and 2022 with a fair amount of capital, but let’s not kid ourselves — these last few quarters have been tough.”

Retention is a major factor in M&A deals, so AnnieMac carefully selects companies. “You hear folks like Stratmor say it all the time — ‘do no harm.’ That’s the Hippocratic Oath of M&A in this industry.”

Balancing organic growth, M&A, and retention

AnnieMac’s growth strategy includes organic growth, acquisitions, and retention.

Organic growth – The company is focused on higher conversion rates and increased lead flow. “Do you have two or three tools in your tech stack specifically tracking conversion rates? Do you know every single loan officer’s conversion rate and where they perform best?” Panebianco asked.

Acquisitions – AnnieMac pursues growth through individual loan officers, branches, divisions, or full firms. “Acquiring firms can actually be easier because you already have senior leadership buy-in,” Panebianco said.

Retention – Reducing turnover is a priority. “The industry turnover rate is around 33%,” Panebianco said. “We’re proud to be at 23%, but our goal is 18% this year. The best place to grow is by not losing your current staff.”

Servicing and customer retention strategy

“You hear some very smart people say, ‘Get as much servicing as you can.‘ But we’re a distributed retail model — we see ourselves as the Nordstrom of mortgages, not the Dollar Tree.“

“If rates are at 8%, I know my investment in servicing needs to stay on my books three and a half to four years to break even. But what if rates drop precipitously?”

AnnieMac also prioritizes customer engagement.

“You can’t just send them an email about their home value or a Thanksgiving recipe,” Panebianco said. “You have to stay in touch with specific value-driven messaging so that when rates drop and you call, they actually answer.“

Competitive market positioning with Cash2Keys

With inventory tight and affordability a challenge, AnnieMac launched Cash2Keys. This program turns financed buyers into cash buyers to help them win bids in competitive markets.

“The best way to elevate buyers who might have lower credit scores is to put them at the top of the hierarchy,” Panebianco explained. “If you look at it, cash buyers come first, then conventional buyers, then VA and FHA buyers — and unfortunately, some agents won’t even look at an FHA contract.“

To solve this problem, AnnieMac created a separate company, AnnieMac Cash Private Equity, to fund the program.

“It has been our biggest market share grab,” Panebianco said. “We’ve unlocked $20–30 million in commissions for realtors and have done nearly $1 billion in Cash2Keys transactions.“

AnnieMac also offers a “Buy Now, Sell Later” program that allows homeowners to purchase a new home before selling their current one.

“The hardest part of these programs is getting realtors and buyers to actually understand them,” Panebianco admitted. “They’re always looking for, ‘How am I getting screwed?’ But the answer is — you’re not. We’re making an investment upfront to create lifelong customer relationships.”

Market outlook: Is relief on the horizon?

Despite the challenges of recent years, Panebianco remains cautiously optimistic.

“The prospect of ‘It’s going to be morning again soon’ is a dangerous mindset for salespeople,” he said. “It keeps buyers at bay.”

Instead, AnnieMac focuses on the fundamentals.

“We did just over 4 million units as an industry last year, about $1.4–$1.6 trillion in loan volume. You can get your unfair share of that if you stick to blocking and tackling.“

He does see signs of improvement, particularly around mortgage rates.

“Our best month last year was October, and if you go back 60 days, rates had dipped,” he said. “That tells me there’s a ton of pent-up demand — not just for purchases, but for refinances, too.”

The future of mortgage growth

With competition high, Panebianco believes lenders must focus on capturing market share.

“In this market, it’s not an expanding pie. If you want to grow, you have to take market share.“

That’s why programs like Cash2Keys matter.

“It’s elevating buyers who wouldn’t even be in the market. We had a veteran lose out on 18 homes — then they won using Cash2Keys. That’s a meaningful impact.“

More than just winning business, Panebianco sees these programs as a long-term investment.

“We don’t want one transaction. We want every transaction for life. Some companies spend on stadium naming rights. We spend on giving buyers real advantages.“

Looking ahead

As the mortgage market evolves, AnnieMac is doubling down on strategic acquisitions, customer retention, and innovative programs like Cash2Keys to outperform competitors and expand market share.

“We’re willing to make the investment up front,” Panebianco said. “Because at the end of the day, it’s about helping our referral partners win more deals and making homeownership a reality for more people.“