New American Funding to add volume by buying Marketplace Home Mortgage
New American Funding expects to add $1 billion to its annual production next year by purchasing Marketplace Home Mortgage.
Terms of the deal were not disclosed.
"We've always grown organically and have been very selective about this type of move in the past. But due to the cultural and business alignment of both brands, coupled with the geographic advantage, we determined this was an excellent opportunity," Rick Arvielo, CEO of New American Funding, said in a press release.
Marketplace is based in Edina, Minn., and also has offices in Florida, Michigan, New Hampshire, South Dakota and Wisconsin. The company has experienced significant growth over the past several years, according to a separate press release it issued.
There was net year-to-year growth in licensed loan officers industrywide in all the states Marketplace does business in during 2017, suggesting these have been relatively strong markets.
In Florida, the number of licensed LOs was up 35% last year, according to the Nationwide Mortgage Licensing System's most recent report. The percentage increases in the other states Marketplace is in were as follows: Michigan, 14%; Minnesota, 9%; New Hampshire, 7%; South Dakota, 29%; and Wisconsin, 14%.
However, industrywide volumes are weaker this year due to rate increases that have diminished refinance incentives. The dollar volume of refis produced by loan officers fell to a 4.5-year low in the third quarter, according to Attom Data Solutions.
"The current market is one that some lenders view as challenging, but we view it as a magnificent opportunity," Keith White, president of Marketplace Home Mortgage, said in the press release.
White founded Marketplace as a small brokerage in 1995. It later became a larger regional lender.