New Residential, the parent company of mortgage lender and servicer NewRez, has entered into a definitive agreement to acquire Texas-based Caliber Home Loans for $ 1.675 billion.
With the acquisition, New Residential intends to merge the platforms of Caliber and NewRez in order to increase and strengthen the earnings profile in all tariff environments.
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Michael Kidneyberg, chairman, CEO and president of New Residential, said the deal is “a great acquisition for our company”.
“The combination of the NewRez and Caliber platforms will create a leading financial services company with the scalability, talent, technology and products to accelerate our mortgage company’s goals and generate strong profits for our shareholders,” said Kidney Berg. “With this acquisition, we have significantly strengthened our performance in all interest rate environments.”
For his part, Sanjiv Das, CEO of Caliber Home Loans, said his team is “excited to join the New Residential family.”
“By combining platforms with NewRez, we will join another industry pioneer who has complementary strengths and is committed to realizing the dream of home ownership,” said Das. “Our combination of strategies will allow us to accelerate our leadership position in purchase credit, expand our direct digital initiatives for consumers and brokers, and continue to advance our retail business.”
The transaction is still subject to regulatory approval and is expected to close in the third quarter of 2021.