Coppell mortgage lender Caliber Home Loans sells for $1.675 billion in consolidation play

Written by MLHA Team

April 16, 2021

Caliber Home Loans, the Coppell-based home mortgage giant, is being sold for $1.675 billion in a consolidation play that creates the nation’s fifth-largest lender serving the still-hot real estate market.

Caliber’s owner, Dallas-based Lone Star Funds, announced the cash deal Wednesday with New Residential Investment Corp., a financial services firm headquartered in New York that operates mortgage lender and servicer NewRez.

The transaction is expected to close in the third quarter.

“We believe this is a terrific acquisition for our company,” said New Residential chairman and CEO Michael Nierenberg in a statement. “The combination of NewRez and Caliber’s platforms will create a premier financial services company with scale, talent, technologies and products.”

Later, in a conference call to discuss the deal, Nierenberg said: “This is going to really help us get back to where we were pre-COVID, grow our earnings, grow our book value and I think create great shareholder value over time.”

Bloomberg Intelligence analyst Ben Elliott described the acquisition as a “bargain” for New Residential.

“The combined entities would service $576 billion in unpaid principal and originate $142 billion a year, collectively the fifth-largest lender nationally, and bolster NewRez’s margins with a substantial improvement in mix, recapture rates and technology,” Elliott wrote.

Caliber reported pre-tax income of $891 million last year, just slightly less than New Residential’s pre-tax income of $934 million.

According to Housing Wire, Caliber ranked as the nation’s sixth-largest originator of home loans and refinancings in 2020.

Nierenberg told analysts that he expects the companies to function separately during the initial integration before combining operations. Executives were vague about who will run the combined company.

Caliber, led by CEO Sanjiv Das, initially filed to go public last fall but later withdrew its IPO, citing uncertain market conditions driven by a spike in COVID-19 infections and the contentious U.S. presidential election. The company employs nearly 6,000 workers.

Some articles from around the MLHA Nation you might like...

0 Comments

Submit a Comment

Getting More Local

Setting Up Shop In Your Area Soon!

Coming Soon!

My Local Home Value

MARKETPLACE

Interactive and Intuitive Digital Magazine focused on the housing markets and home values of Your Area.

Sample is of 

My Seattle
Home Value
Marketplace

Coming Soon!

Vounce HOME VALUE

MARKETPLACE

Interactive and Intuitive Digital Magazine focused on the housing markets and home values of Your Area.

Sample is of 

My Seattle
Home Value
Marketplace

Coming Soon!

My Local Home Value

MARKETPLACE

Interactive and Intuitive Digital Magazine focused on the housing markets and home values of the area you live.

Sample is of

My Seattle
Home Value
Marketplace

Appraiser Interview Guide

We have a combined 70+ years of appraisal experience. It makes us happy to share this with you. Let's jump right in then!

1. The first thing is a lot like many things you might get ready to do is to get your ducks in a row, and have a game plan for setting up your appraisal. And of course  you can't know everything about everything so the right appraiser will provide those answers, and you will get the best results.

2. Have your property information readily available when talking with the appraiser...

Get the complete Appraiser Interview Guide delivered directly to your email box in a readable and downloadable format, there's no cost.

Locations By State

We have all Current Certified Residential and Licenced Appraisers in the country. You can simply get started anytime.
We have also setup in many cities and metro areas as well as a centalized base for many rural locations. We will setup more locations each week.

Washington  |  Oregon  |  California  |  Texas  |  New York  |  Illinois  |  Florida  |  Pennsylvania  |  Washington DC

Locations By State

We have all Current Certified Residential and Licenced Appraisers in the country. You can simply get started anytime.
We have also setup in many cities and metro areas as well as a centalized base for many rural locations. We will setup more locations each week.

Washington  |  Oregon  |  California  |  Texas  |  New York  |  Illinois  |  Florida  |  Pennsylvania  |  Washington DC

Home Office

Portland, OR

Phone

503 781-0448

Contact Us

Copyright ©2021 • My Local Home Appraiser

Copyright ©2021 • My Local Home Appraiser

Phone: (503) 349-3765  Home Office: Portland, OR  |  Email: contact@mylocalhomeappraiser.com

  Email: contact@mylocalhomeappraiser.com