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Michigan-based wholesale lender Homepoint plans to stop originating mortgages and sell its wholesale channel.
The lender said in a statement on Friday that the company has agreed to sell certain assets of its wholesale originations channel to The Loan Store Inc., a Tucson, Arizona-based national wholesale lender.
“Due to the tremendous effort of our associates and the support of our broker partners, we have built Homepoint from a startup to the third-largest wholesale lender,” Willie Newman, president and CEO of Homepoint, said in the statement. “After careful consideration, and in light of current market conditions, we have decided to sell our wholesale originations business to The Loan Store. We believe this is the best decision for our company to continue to deliver value to Home Point shareholders.”
The transaction is expected to close this quarter and is subject to customary closing conditions, the statement said.
Homepoint was among the top 50 residential purchase lenders in Massachusetts over the past three years, according to The Warren Group, publisher of Banker & Tradesman. The lender had $185.38 million in residential purchase volume and 416 loans in 2022, along with 356 residential refinances.
Homepoint’s president of originations, Phil Shoemaker, will become CEO of The Loan Store. Mark Lefanowicz, The Loan Store’s current CEO, will become executive chairman of the company’s board.
“I am proud of what we accomplished at Homepoint and thankful for the experience,” Shoemaker said in the statement. “I’m looking forward to the next chapter at The Loan Store where we will continue making a positive impact within the wholesale lending community.”
Founded in 2019, The Loan Store, like Homepoint, operates only in the wholesale channel. The Loan Store does not currently provide loans in Massachusetts, according to its website.
“At The Loan Store, we’ve built an efficient platform that provides what we believe is truly a best-in-class experience for our partners,” Brandon Stein, president of The Loan Store, said in the statement. “Combining that with the visionary leadership of Phil Shoemaker and a highly regarded sales and operations team, The Loan Store is well-positioned to sustainably scale our business.”
Homepoint, which had participated in the originations market for nine years, said it will hold an equity interest in The Loan Store and continue to manage mortgage servicing rights.
