Correspondent and wholesale lender Homepoint is the latest mortgage company to aim for an IPO.
The Ann Arbor, Michigan-based lender filed an S-1 with the Securities and Exchanges Commission on Friday afternoon.
The company indicated in the S-1 that its price offering was $100 million, generally a placeholder for a larger offering.
In its S-1, Homepoint revealed incredible growth over the past year.
Homepoint originated $46.3 billion in originations through its broker network in the 12 months that ended Sept. 30, 2020. It originated a total of $38 billion in loans through the first three quarters of 2020, according to the S-1. It’s a phenomenal rise for a lender that originated just $10.6 billion in 2018.
The $38 billion origination figure makes Homepoint the third-largest wholesale lender in America, behind United Wholesale Mortgage and Caliber Home Loans. Overall, Home Point is the 10th largest non-bank originator in the United States.
Led by CEO Willie Newman, Homepoint has operated somewhat differently to other wholesale lenders, opting to service all of its loans. It claims to have serviced the mortgages of more than 300,000 borrowers since its founding in 2015.
Though it’s best known for its wholesale channel, Homepoint also operates in the correspondent channel, purchasing loans already issued to end-borrower customers, as well as the direct channel.
Homepoint’s potential IPO won’t come as a surprise to most observers given its hedge fund backing.
The lender’s Wall Street debut also would follow that of local rival UWM, the largest lender in the wholesale channel, and overall king of the hill, Rocket Companies, which went public over the summer.
UWM, led by Mat Ishbia, is expected to debut via a special acquisition company on Jan. 22 at a valuation of $16.1 billion. Caliber, which is a multichannel lender, also planned to go public but postponed its IPO following Guild Mortgage’s choppy debut.
In its S-1, Homepoint disclosed that its adjusted net income for the first three quarters of 2020 was $494.6 million.
Homepoint will be listed on the NASDAQ under the ticker symbol “HMPT.” Goldman Sachs, Wells Fargo, Morgan Stanley and UBS Investment Bank are acting as lead book-running managers for the proposed offering.
Justin Malonson is the Founder of LyfeLoop a 16+ year tech innovator, investigative media researcher and host of the Freedom Not Control Podcast live on Voice America. Justin is a highly sought-after tech entrepreneur, industry speaker and winner of the coveted Business Achievement Awards “Top Digital Marketer” award. With 16+ years of demanding experience, Justin has worked with over 3,000 businesses including amazing clients such as Blue Cross Blue Shield Association, Sotheby’s International Realty, Duke University, White House Black Market,Tiffin Motorhomes, Bass Pro Shops and Beazer Homes USA.