Home Point will shut down operations following the deal closing, which is expected in the third quarter of this year, the release says.
Home Point CEO Willie Newman did not respond to messages seeking comment Wednesday.
“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,” Jay Bray, chairman and CEO of Home Point, said in the release. “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.”
The deal with Mr. Cooper comes just more than one month after the struggling Home Point announced a sale of its core mortgage lending business to The Loan Store Inc., based in Tucson, Ariz.
Home Point went public in late 2021 at a valuation of about $1.8 billion, bringing in $94.25 million to selling shareholders. Since then, the company’s stock has declined more than 83% and shares closed on Wednesday at less than $2 per share.
As the mortgage industry has gone cold over the last year and more, Home Point has also cut thousands of jobs, and lost $164 million last year.
Read More: Home Point to sell remaining mortgage business to Mr. Cooper