Caliber Home Loans and Newrez Complete Acquisition

Caliber Home Loans and Newrez have completed their acquisition, forming a leading mortgage lender.

This acquisition brings together two industry giants, creating a powerhouse in the mortgage lending space.

With over $150 billion in assets, the combined company is well-positioned to serve the needs of homebuyers and homeowners across the country.

The acquisition is expected to enhance the companies' ability to provide innovative mortgage solutions and exceptional customer service.

NewRez acquired Caliber Home Loans in a deal valued at $1.675 billion, strengthening its retail footprint and bulking up its servicing business.

The acquisition is expected to close in the third quarter of 2021, with NewRez gaining a heavy-hitter across multiple origination channels.

Caliber originated $80 billion in mortgages in 2020, with a $153 billion servicing portfolio and roughly 630,000 customers as of December 31, 2020.

NewRez will add Caliber's customer-retention capabilities, a network of talented underwriters and back-office staff, and a large servicing book to its operations.

Related reading: Specialized Loan Servicing Mortgage Payment

This deal represents another big acquisition for NewRez, which acquired Ditech's forward origination and servicing business for $1.2 billion in 2019 and Shellpoint Partners for $190 million in 2018.

Caliber originated 228,633 single-family loans in 2020 with an origination volume of $70.6 billion, ranking fifth in purchase loans according to 2020 HMDA data.

The acquisition is part of NewRez's strategy to grow and strengthen its earnings profile across different rate environments.

New Residential Investment Corp. is the parent company of NewRez, which has been recovering from a difficult 2020, posting a $1.6 billion loss in the first quarter due to the Fed Reserve's purchase program.

The combined company is expected to add roughly $150 billion UPB of MSRs, technological enhancements, talent, and an extensive local footprint, particularly in purchase lending.

New Residential intends to merge Caliber and NewRez, expanding its capabilities, products, and presence across mortgage origination and servicing space.

Executives Sanjiv Das and Baron Silverstein will lead the combined platform, with Das taking the role of CEO and Silverstein serving as president and chief operating officer.

The acquisition is a significant step in growing a leading mortgage company with tremendous earnings power within New Residential.

You might enjoy: Cash in 1 Hour Payday Loan

Caliber Home Loans' leadership has undergone significant changes, with Mark Caswell serving as the company's President and CEO since 2016.

Under Caswell's leadership, Caliber has made strategic investments in technology and talent, expanding its operations and improving efficiency.

Newrez, on the other hand, has maintained a stable leadership team, with Michael Yanney serving as the company's Chairman and CEO since its inception.

Newrez and Caliber have taken a significant step in strengthening their mortgage operations by appointing new leaders. Jordan Licht has been appointed Chief Operating Officer for both Newrez and Caliber, driving technology, operations, and data and analytics.

Jordan Licht brings a wealth of experience to this role, having joined Caliber in 2017 and holding several executive management positions across production and finance. His leadership will be instrumental in shaping the future of both organizations.

Shane Ross has been appointed Head of Servicing for both Newrez and Caliber platforms. He previously served as President of Servicing at Shellpoint Mortgage Servicing, a division of the company.

Michael Nierenberg, Chairman, Chief Executive Officer, and President of New Residential Investment Corp, believes that these leadership appointments will be transformational for both organizations. He is confident that their collective leadership will set a new curve for the industry.

Readers also liked: New Payday Advance

Newrez recently let go of several regional and divisional managers, including some who joined the company as part of the Caliber Home Loans acquisition in 2021.

This move has sparked speculation that Newrez is divesting from its retail operations and shifting its focus to servicing.

Newrez declined to provide an estimate of the number of leaders impacted by the reduction, calling it a "bit of a flattening of the organization."

Industry stakeholders are interpreting this as a signal that the company is reassessing its priorities.

The headcount reduction occurred at a time when other mortgage shops, such as Freedom Mortgage, are starting to rehire.

Executives at Newrez maintain that they are "100% committed to the distributed retail channel."

The company is highlighting the importance of connecting its servicing portfolio and leads on a localized basis to connect with customers.

Newrez is not the only company undergoing restructuring, as many mortgage shops are currently in the process of "breaking it to remake it."

If you're struggling to pay back your mortgage, there are options available to you. You can pay back past due payments of more than 3 months with a Formal Repayment Plan.

This plan allows you to make monthly payments and spread the past due amount over a period of up to 12 months. Depending on investor participation, you may be able to take advantage of this option.

To set up a Formal Repayment Plan, you'll need to contact our Customer Support at 800-401-6587. This process can be handled almost entirely over the phone, making it a convenient option.

Here are the steps to follow:

A Formal Repayment Plan can be a great option if you're struggling to pay back past due payments. This plan allows you to make monthly payments and spread the past due amount over a period of up to 12 months.

To set up a Formal Repayment Plan, you'll need to contact our Customer Support team at 800-401-6587. This process can be handled almost entirely over the phone, which is convenient.

You'll also need to upload or send your documents to Caliber as part of the application process. Make sure you have all the necessary documents ready to go.

A decision on your request will be made within 30 days of submitting your application. If approved, you'll receive a Formal Repayment Plan Agreement with the terms of your agreement.

Here's a quick summary of the steps involved in setting up a Formal Repayment Plan:

A Deed in Lieu of Foreclosure can be a viable option for homeowners who are unable to afford their mortgage. It's essentially a voluntary release of the home to the lender.

This option is often considered after all other alternatives have been exhausted, such as Homeowners who have become unemployed may find it difficult to make mortgage payments.

A Deed in Lieu of Foreclosure can be arranged with the lender, Caliber Home Loans in this case, allowing homeowners to avoid the foreclosure process without selling their home.

This option can provide relief for homeowners who are struggling financially and need to release their home from their mortgage obligations.

Recommended read: How Much Equity Can I Release from My Home