The company will acquire 20 branches and some origination employees in the deal.

The transaction comes along with a low-coupon, low leverage $13 billion conforming portfolio, providing capital for further growth.

The unit was looking to remain as a team, but reportedly the buyer was only interested in the sales staff.

The transaction helps cement WFG's place in the Bay Area market, something it has targeted since its 2010 founding, Chairman Patrick Stone said.

Guild Mortgage and Axia Home Loans shared their perspectives on how to ensure the health and prosperity of smaller shops at the MBA Secondary & Capital Markets Conference this week.

The regional bank made the deal as part of an effort to bolster liquidity following turmoil among its peers.

The company's recent expansion into commercial servicing is part of a broader effort to build a diversified business model, according to President and CEO Mike Dubeck.

The regulator, which is seeking to halt the combination, said arguments involving constitutionality of its proceedings are "impertinent" and "immaterial."

Following sales to Mr. Cooper and The Loan Store, the wholesale giant reported originations of $891.2 million between January and March.

The Dallas-based lender will assume close to $1.1 billion of conventional mortgage servicing rights, roughly $600 million in tangible equity and $500 million in outstanding Home Point 5% senior notes.