Encompass Lending Groupa subsidiary of a real estate service platform Fathom Holdings, Acquired a company based in Austin, Texas Elite Financing Group, The company announced Thursday. Terms of the deal were not disclosed.
Elite Financing Group is headquartered in Cary, North Carolina and operates under the umbrella of Encompass, which is based in the Dallas-Fort Worth area.
“Elite Financing Group’s current operations and local relationships will almost double the number of mortgages closed nationwide over the next year,” Fathom CEO Joshua Hurley said in a statement. could become,” he said. Elite brings local market expertise, which should help strengthen Fathom’s mortgage business in Texas, he added.
Elite Financing Group has two branches in Austin and The Colony and has 28 sponsored mortgage originators (MLOs), according to the company. Nationwide multi-state licensing system (NMLS).
Founded in 2005, Elite has generated $164 million in output across 465 loans in the past year, according to the Mortgage Data Platform. Modex.
With 11 offices in seven states and Washington, DC, Encompass Lending Group has 58 sponsoring MLOs, according to NMLS data. According to Modex, the financier is registered in 47 states, and in the past year he has arranged 495 loans with $148.5 million in output.
The mortgage industry’s efforts to shrink due to the refinancing boom have fueled merger and acquisition activity in the sector.
For example, personal finance companies guild mortgage got this week First Centennial Mortgage, A privately held financial institution based in Illinois with 15 branches.
In addition, Texas-based Mr Cooper Group acquired Home Point Capital earlier this month, a deal that included underwriting a $500 million bond.
After the closing of the final tender offer, Mr. Cooper completed the acquisition of Homepoint through a means called . heisman merger sub.
Independent mortgage banks (IMBs) averaged $534 in net losses per loan originated in the second quarter, an improvement from $1,972 per loan in the first quarter, according to the Times. reported. Mortgage Bankers Association (MBA).
That figure is still lower than the $82 average net loss per loan in the second quarter of 2022, with 58% of companies reporting a profit in the second quarter of this year.