Newrez Buys Caliber Home Loans in Major Acquisition

Newrez has made a major acquisition by buying Caliber Home Loans, a significant move in the mortgage industry.

This acquisition is a major development in the mortgage industry, with Newrez becoming one of the largest non-bank mortgage lenders in the US.

Newrez, a leading mortgage lender, has acquired Caliber Home Loans, a company with a long history in the industry.

The acquisition is expected to expand Newrez's presence in the mortgage market, making it a more formidable player in the industry.

Newrez's acquisition of Caliber Home Loans is a significant milestone in the company's growth and expansion plans.

NewRez acquired Caliber Home Loans in a deal valued at $1.675 billion, with the transaction expected to close in the third quarter of 2021.

The acquisition strengthens NewRez's retail footprint and bulks up its servicing business, with Caliber originating $80 billion in mortgages in 2020 and having a $153 billion servicing portfolio with roughly 630,000 customers as of Dec. 31, 2020.

NewRez said the deal would allow the firm to grow and strengthen its earnings profile across different rate environments, and add Caliber's customer-retention capabilities, a network of talented underwriters and back-office staff, plus a large servicing book.

The combined company is expected to add roughly $150 billion in unpaid principal balances to its mortgage servicing rights, and NewRez will merge Caliber and NewRez as part of its strategy to expand 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, and is expected to contribute meaningfully to New Residential's growth in 2021 and beyond.

NewRez has made other large-scale mortgage company acquisitions in recent months, including the acquisition of Ditech's forward origination and servicing business for $1.2 billion in 2019, and the acquisition of Shellpoint Partners (the parent of New Penn Financial) in 2018 for $190 million.

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

The acquisition is expected to close in the third quarter of 2021, and will allow NewRez to grow and strengthen its earnings profile across different rate environments.

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

NewRez's acquisition of Caliber's customer-retention capabilities will be a significant addition to its business, with Caliber boasting a 54% recapture rate last year.

NewRez has made several large-scale acquisitions in recent months, including the purchase of Ditech's forward origination and servicing business for $1.2 billion in 2019.

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

New Residential Investment Corp. has been recovering from a difficult 2020, which saw it post a $1.6 billion loss due to the Fed Reserve's purchase program.