Founded in 2019, The Loan Store is a mortgage company operating solely in the wholesale channel. With the acquisition, The Loan Store aims to scale its loan originations business into a national wholesale lender.
The deal, which remains subject to customary closing conditions, will see Homepoint hold an equity interest in The Loan Store. This will enable the company and its shareholders to participate in The Loan Store’s potential future success, according to its news release. Homepoint said it will continue to manage its mortgage servicing rights (MSR) asset and balance sheet, which the firm expects to generate significant returns and cash flow over time.
Homepoint – the third biggest wholesale lender in the US – reported a quarterly loss of $24.2 million and an annual loss of $106.9 million in its origination segment in Q4 2022. In addition to the origination slump, the continually worsening market conditions pushed the Michigan-based company to lay off hundreds of workers late last year.
Phil Shoemaker, president of originations at Homepoint, will serve as CEO of The Loan Store. Mark Lefanowicz, the current CEO of The Loan Store, will move into an executive chairman role on the company’s board.
“I am proud of what we accomplished at Homepoint and thankful for the experience,” Shoemaker said. “I’m looking forward to the next chapter at The Loan Store, where we will continue making a positive impact within the wholesale lending community.”
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