Nationstar Mortgage Holdings (NYSE:NSM) plans to maintain the reverse mortgage division of Greenlight financial running business as usual following the acquisition of Greenlight announced in early May for up to $75 million.
That will include staff as well as the Greenlight brand, a company spokesman told RMD.
“Nationstar is excited about the acquisition,” said spokesman John Hoffmann following the acquisition announcement. “We are excited to have Greenlight joining including its reverse division and we are just as committed as always.”
Greenlight has been growing its reverse division, based in Irvine, California, since its launch in June 2011 under the leadership of former OMNI reverse mortgage execs.
The division had closed more than 217 reverse mortgages from January through April according to the latest report by Reverse Market Insight, marking a 90% increase over last year.
The operations will continue as a standalone, according to Nationstar, including branding and product labeling.
“We want them to keep doing the good work they’re doing. Their operation is something we’re very interested in,” said Hoffmann.
The deal specified a purchase price of up to $75 million in cash with the expectation of “sizable volume and profitability uplift” and additional annual volume of $8 billion-plus. The deal is accretive to earnings per share by at least $.70 annually, the company projected upon announcing earnings for the first quarter of $62.6 million or $.70 per share.
Written by Elizabeth Ecker