Home Point Capital mortgage lender in Ann Arbor goes public
Another nationally classified mortgage company in Southeast Michigan goes public.
Ann Arbor-based Home Point Capital, which employs 2,600 people nationwide, filed documents with the SEC on Friday afternoon for an initial public offering proposal later this year on NASDAQ.
Home Point is said to be the region’s third non-bank mortgage company to go public in less than a year.
Detroit-based Quicken Loans, the nation’s largest mortgage lender, went public in August on the New York Stock Exchange to raise $ 1.8 billion. United Wholesale Mortgage, based in Pontiac, plans to go public on January 22 on the New York Stock Exchange by merging with a so-called special acquisition company, also known as the “blank check company”, which is owned by to businessman Alec Gores, the older brother of Detroit Pistons owner Tom Gores.
The number of shares in Home Point’s IPO and their price range have not yet been determined. A spokesperson for the company declined to provide further details of the planned IPO beyond filing with the SEC.
Even amid the COVID-19 pandemic and associated economic downturn, there has been an increase in the number of businesses going public in recent months.
The mortgage sector experienced particularly strong profitability, driven by a flurry of mortgage refinancing activity driven by historically low interest rates. However, the mortgage market is expected to contract in 2021 as the refinancing boom wears off.
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Home Point Capital was formed in 2015 and is led by President and CEO Willie Newman, who is 56 years old.
Industry publications rank Home Point as the third largest wholesale lender in the country, dealing with brokerage mortgage underwriting. It also deals with mortgage services and “mail order” loans. The No. 2 wholesale lender is Quicken Loans and the No. 1 in this category is United Wholesale Mortgage, according to industry observer Inside Mortgage Finance.
Home Point has funded a total of $ 46 billion in mortgages in the 12-month period through Sept. 30, according to its SEC filing, and holds a 1.3% share of the overall mortgage market.
The company achieved a net profit of $ 422.6 million in the first three quarters of 2020, compared to a loss of $ 45.2 million in the same nine-month period in 2019. The number of employees Home Point grew to 2,600 last fall after starting the year at 1,500.