Planet Home Lending to Acquire Homepoint Correspondent Assets

Planet Home Lending, LLC, a national mortgage lender and servicer, has entered into a definitive agreement to acquire certain assets of the delegated correspondent channel of Home Point Financial Corporation, a mortgage originator and servicer and a subsidiary of Home Point 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.”

Correspondent lenders served by both companies will benefit from consolidation in a volatile market, said Planet Home Lending President of Lending John Bosley. “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: “We are very proud of our 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.”

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 added. Planet will combine the best practices of both entities to create a streamlined customer experience delivered via Planet’s CORE Seller platform. The deal is expected to close in the second quarter of 2022, subject to customary closing conditions.

McGuireWoods, LLP acted as legal adviser to Planet Home Lending. Jones Day acted as legal adviser to Homepoint. Stratmor Group acted as investment banking adviser to Homepoint.

About Planet Financial Group, LLC
Planet Financial Group, (PFG) LLC, Meriden, Conn., is a fully integrated family of companies delivering innovative origination, servicing and asset management solutions. Through this synergistic ecosystem of products, services and technologies, PFG provides best-in-class experiences for investors pursuing value maximization and borrowers seeking streamlined end-to-end loan lifecycle support. PFG is the parent of Planet Home Lending, LLC and Planet Management Group, LLC, which also does business under the name Planet Renovation Capital.

About Planet Home Lending, LLC
Planet Home Lending, LLCMeriden, Connecticut, (NMLS #17022) is an approved originator and servicer for FHA, VA and USDA, as well as a Freddie Mac and Fannie Mae Seller/Servicer, a full Ginnie Mae Issuer and approved sub-servicer and a Standard & Poor’s Global Ratings- and Fitch Ratings-rated special and prime residential servicer. Planet Home Lending, LLC has been assigned a corporate family rating by Moody’s Investors Service viewable at www.moodys.com. Its correspondent division offers a full suite of government, agency and niche home loans. Planet Home Lending, LLC is also a special servicer managing diverse investor portfolios. Its customized servicing solutions maximize asset recovery and optimize performance through active management at the portfolio and loan levels. Planet Home Lending, LLC is an Equal Housing Lender. For more information about Planet Home Lending’s Correspondent offerings, please visit https://phlcorrespondent.com. For more information about Planet Home Lending, LLC, please visit https://planethomelending.com.

About Homepoint
Homepoint, a subsidiary of Home Point Capital Inc. (NASDAQ: HMPT), is one of the nation’s leading mortgage originators and servicers, putting people front and center of the homebuying and homeownership experience. The company supports successful homeownership as a crucial element of broader financial security and well-being through delivering long-term value beyond the loan. Founded in 2015 and headquartered in Ann Arbor, Michigan, Homepoint works with a nationwide network of more than 8,500 mortgage brokers and correspondent partners with deep knowledge and expertise about the communities and customers they serve. Today, Homepoint is the nation’s third-largest wholesale mortgage lender and the 7th-largest nonbank mortgage lender.