It’s a buyer’s market for mortgage firms these days, and former Cole Taylor Mortgage Chief Executive Willie Newman couldn’t be in a better place: He’s teamed up with Stone Point Capital, a hedge fund that has committed several hundred million dollars to the purchase of residential lenders. “We have a lot of plans,” Newman told Inside Mortgage Finance. “We plan to be in originations, servicing, capital markets and multi-channel production.” It was...
The price quotes can vary greatly depending on the size of the company being targeted, especially if there’s a servicing portfolio and platform that needs to be looked at.
Here’s what the current state of mortgage banking boils down to: Can the industry survive on $1 trillion to $1.2 trillion in production a year through 2015?
“I don’t think it gets sold for the time being,” said one analyst speaking under the condition his name not be used. “It needs lots of restructuring yet.”
Since that story appeared, we’ve talked to a few mortgage company CEOs who have said – tongue in cheek – that just about every mortgage firm is for sale.
Mortgage firms that hope to acquire other companies can expect to pay anywhere from $200,000 to $500,000 in due-diligence costs as they put their targets under the financial microscope, according to interviews conducted by Inside Mortgage Finance over the past few weeks. The price quotes can vary greatly depending on the size of the company being targeted, especially if there’s a servicing portfolio and platform that needs to be looked at. “The cost absolutely varies...
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